Consumer prices rose 0.4% in October, accelerating from September’s 0.6% jump, according to the Bureau of Labor Statistics. Core inflation, excluding food and energy, climbed 0.3%, while overall prices were roughly 4% higher year-over-year — up from 3.7% in September. Food prices surged 0.5%, with meat and dairy driving gains, while energy costs rose 0.7%, slowing from September’s 5.2% spike.
Gasoline increased just 1%, compared to 9.1% the prior month. Economists warn inflation is broadening: diesel price hikes are pushing up freight costs, affecting bulky goods like furniture and appliances. Pooja Sriram of Barclays notes 18% of goods rely on diesel.
Meanwhile, AI-driven demand has boosted computer chip and software prices — computers up 12%, software over 25% year-over-year. Kevin Hassett called the report “disappointing,” citing energy cost trickle-down. With the Fed’s final Dec. 8–9 meeting approaching, officials are expected to raise rates again.
The central bank targets 2% inflation via the PCE index, which has overshot for nearly six years. Core services excluding housing (“supercore”) rose 0.4%, now running at 5.5% annually.
Source: New York Times Business · Summarized by HeadlinesBriefing