Consumer prices rise 0.4% in October, above forecasts, as Fed officials weigh faster rate hikes

Consumer prices rose 0.4% in October from September, the Labor Department reported Tuesday, faster than the 0.3% economists polled by FactSet had forecast. Monthly inflation cooled from September's 0.6% rise, but the Labor Department did not report a year-over-year rate because the 2025 government shutdown left no October 2025 data for comparison. Core prices rose 0.3% for a third straight month, and shelter costs rose 0.3%, according to Andrew Davis of Bryn Mawr Trust. Recent inflation has been driven largely by energy, but costs for other goods are rising too, and the data arrived shortly after midterm elections. Fed officials are weighing whether gradual rate hikes will suffice, and some are considering faster increases.

Left-leaning CBS News leads with the hotter-than-expected figure, saying it offers little relief to Americans facing high living costs, and its headline stresses higher odds of a Fed rate hike. It features Davis's view that underlying inflation is more persistent than the Fed would like and highlights voter frustration with prices after the midterms. Right-leaning Washington Times runs the same headline and opening as the AP story, leading instead with Fed officials considering faster hikes and warning that mortgages, credit cards and other borrowing will become more expensive; its excerpt names no economist and does not mention the forecast miss. Both sides report the 0.4% rise, the cooling from September, and the spread of price pressure beyond energy, but CBS centers household costs and rate odds while the Washington Times centers borrowing costs. Alternative outlet Axios adds that Fed officials doubt gradual hikes will be enough to contain inflation.