US inflation exceeds expectations and boosts chances of half-point rate hike

US inflation exceeded economists' expectations in October 2026, with the consumer price index rising 0.4% month-on-month, boosting the likelihood of a half-point rate hike at the Federal Reserve's December meeting.

Consumer prices in the United States rose more than economists had expected in October 2026, increasing the likelihood that the Federal Reserve will raise interest rates at a faster pace at its upcoming meeting on December 8-9. Data from the Bureau of Labor Statistics, released Tuesday, November 10, showed the consumer price index rose 0.4% month-on-month, compared to a 0.6% increase in September. The core inflation index, which excludes volatile food and energy prices, rose 0.3% for the third consecutive month, exceeding economists' expectations of a 0.2% increase. According to Reuters, the new reading heightened concerns that inflation will remain elevated and revived the possibility of a half-point rate hike by the U.S. central bank. The report details showed continued price increases for several basic goods and services, despite a slowdown in the monthly increase of the overall index compared to the previous month. Housing costs rose 0.3% in October, accounting for more than 30% of the total increase in the consumer price index. Food prices rose 0.5%, while energy prices increased 0.7%.