Price pressures persisted in October
Why it matters: The Consumer Price Index shows that even as gasoline prices steadied, inflation pressures elsewhere remained stubborn.
Key points
- But if one assumes the October 2025 readings were halfway between September and November, year-over-year inflation comes to 4% — or 2.8% excluding food and energy.
- Data: Bureau of Labor Statistics; Chart: Courtenay Brown/Axios Inflation remained hot in October, according to data from the Labor Department released on Tuesday.
- Now they face the more difficult task of delivering on their promises, with limited power to reverse years of price increases.
In a speech, Fed governor Christopher Waller said a half-point rate hike should be considered next month if core inflation rose by at least 0.3% in October — exactly what Tuesday's report showed.
The bottom line: Inflation remains stubbornly hot, strengthening the case for another Fed rate hike and prolonging the cost-of-living pressures that have frustrated American households.
Additional details
- Gasoline prices gained 1% in October, a sharp slowdown from the 9.1% surge in September, the Labor Department said.
- Last year's government shutdown left a gap in the data that prevents direct comparisons with October 2025.
- Of note: The Labor Department did not publish year-over-year inflation rates for October.
- Core CPI, which excludes volatile food and energy prices, advanced 0.3% for the third straight month, with higher prices for recreation, medical care, car insurance and airline fares contributing to the increase.
- The yield on the two-year Treasury note, which is particularly sensitive to expectations for Fed interest rate policy, jumped 0.13% on Tuesday following Waller's comments and the CPI report.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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