US consumer prices rise 0.4% in October, beating forecasts

US consumer prices rose 0.4% in October, exceeding economists' forecast of 0.3%, keeping the Federal Reserve on track to raise interest rates next month. The increase followed a 0.6% gain in September, with core CPI also rising 0.3% against a predicted 0.2%. Inflation remains well above the Fed's 2% target, driven by oil prices from the US-Israeli war with Iran and Trump administration import tariffs. Year-over-year data was unavailable due to last year's government shutdown preventing October 2025 data collection. Financial markets have fully priced in a 25 basis point rate hike next month, with only a major equity sell-off or widening credit spreads expected to prevent it.