US inflation stays high as October consumer prices rise 0.4%

U.S. inflation remained stubbornly high in October, with consumer prices rising 0.4% from September, exceeding forecasts and signaling continued cost pressures for households and policymakers. The Labor Department reported Tuesday that core prices, excluding food and energy, rose 0.3%, also a tenth of a point above expectations. Grocery costs jumped 0.4%, electricity rose 0.9%, and gas prices increased 1%, though the yearly rate was unavailable due to last year's government shutdown. The persistent inflation, which fueled Democratic victories in last week's midterm elections, makes a Federal Reserve interest rate hike in December highly likely. Fed governor Christopher Waller suggested a half-point increase was possible, while markets dipped on expectations of prolonged high rates.