Inflation ran hotter than expected last month, underscoring affordability challenges

WASHINGTON (AP) — U.S. inflation was higher than expected last month in a sign that the rising prices that powered sweeping Democratic victories in last week’s midterm elections will continue to pose challenges for the White House and the Federal Reserve.

The consumer price index rose 0.4% from September to October, the Labor Department said Tuesday, down from 0.6% the previous month. The government did not report a yearly inflation rate because last year’s government shutdown meant no data was released for October 2025.

Excluding the volatile food and energy categories, core prices rose 0.3%, the same as the preceding month. Both figures were a tenth of a point higher than forecast.

U.S. markets dipped immediately after the inflation report and Treasury yields ticked higher.

The data shows that inflation remains noticeably above the Federal Reserve’s target of 2%, and Americans’ struggles with high prices were evident as they ousted Republican majorities from the House and Senate last week. Yet with solid gains in both chambers, Democrats in Congress will soon face the challenge of how to address voters’ affordability concerns. President Donald Trump has acknowledged voter anger over the Iran war and gas prices but has shown no sign yet of changing course.

The AP Voter Poll, a survey of 100,000 voters, found about two-thirds blamed Trump’s policies for higher costs. About 9 in 10 said the cost of living was a “crucial” or “major” factor in their vote.