October Inflation Slows to 0.4% but Stays High, Pressuring Fed

U.S. consumer prices rose 0.4% in October, down from September's 0.6% but above the 0.3% economists expected, keeping inflation at an "uncomfortably high" level that likely pushes the Federal Reserve toward another rate increase in December. The core CPI, excluding food and energy, rose 0.3% for a third straight month, well above the 0.2% pace consistent with the Fed's 2% annual target. Housing contributed over 30% of the increase, while gasoline prices rose 1% after a 9.1% jump in September. Food prices climbed 0.5%, and airfares increased 0.4%. Economists attribute persistent inflation to the Iran war's impact on energy costs, Trump administration tariffs on goods like toys and furniture, and AI-related demand for electricity and electronics. No annual figure was reported due to last year's federal government shutdown disrupting data collection.