US inflation surprised markets as the Consumer Price Index rose 0.4 percent in October. Core consumer prices increased by 0.3% in October 2026, surpassing market expectations of 0.2%. Many sectors saw price hikes, with shelter and food costs rising. Transportation services also got expensive, as oil prices impacted the core sector.
The headline inflation seems to have cooled down but is above the market estimate of 0.3%. The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in October after rising 0.6 percent in September.
The core inflation numbers came in steady but showed no signs of easing, and above market expectations. The index for all items less food and energy rose 0.3 percent in October, as it did in September and August.
Core consumer prices in the United States increased by 0.3% in October 2026, marking the third consecutive month of growth and surpassing market expectations of 0.2%.
Notably, transportation services saw a price rise of 0.8%, compared to 0.6% in September, suggesting that escalating oil and fuel prices in the wholesale market are impacting core transportation sectors.
The U.S. Bureau of Labor Statistics reported that it could not publish 12-month percent changes for October 2026 for indexes, indlcuing the US CPI data, where October 2025 data are unavailable. BLS did not collect survey data for October 2025 because of a lapse in appropriations. For most CPI series, BLS could not publish October 2025 indexes.
US CPI inflation: Key numbers for October 2026
Source: Bureau of Labor Statistics
Index Data
The index for shelter rose 0.3 percent in October, accounting for over thirty percent of the monthly all items increase. The food index increased 0.5 percent in October, as the food at home index rose 0.4 percent and the food away from home index increased 0.5 percent. The index for energy increased 0.7 percent over the month following a 5.2-percent increase in September.
The medical care index increased 0.3 percent in October after rising 0.1 percent in September. The index for hospital services rose 0.8 percent over the month, and the index for physicians’ services increased 0.4 percent. The prescription drugs index rose 0.3 percent in October.
The index for used cars and trucks declined 1.2 percent in October after rising 0.7 percent in September. The communication index decreased 0.1 percent over the month.
The annual change in US CPI for October 2026 was not published alongside the November 10 release, following an earlier announcement by the Bureau of Labor Statistics (BLS) that it would not report 12-month percentage changes for indexes lacking October 2025 data. This follows the federal government shutdown, which prevented the collection and publication of CPI data for that month.