Inflation in the USA exceeded expectations: Markets had their eye on this data

Consumer prices in the USA increased above expectations in October. Consumer Price Index (CPI) increased by 0.4 percent monthly, and core CPI, which excludes food and energy prices, increased by 0.3 percent. The annual inflation rate could not be calculated due to missing data for the period October 2025.

According to data released by the US Bureau of Labor Statistics (BLS), CPI increased by 0.4 percent monthly in October. The increase was expected to be 0.3 percent in the markets. Consumer prices increased by 0.6 percent in September.

Core CPI increased by 0.3 percent in October, exceeding the market expectation of 0.2 percent. Core inflation was at 0.3 percent in August and September.

The BLS reported in October 2025 that survey data could not be collected due to interruptions in public appropriations. For this reason, October 2026 annual inflation rates could not be calculated for items for which no comparison data was available.

FOOD AND HOUSING PRICES INCREASED

Housing costs increased by 0.3 percent in October. This increase accounted for more than 30 percent of the monthly increase in the general index. The increase in housing costs was 0.4 percent in September.

Food prices rose 0.5 percent in October after remaining unchanged in September. The prices of food consumed at home increased by 0.4 percent, and the prices of eating out increased by 0.5 percent.

While beef prices increased by 0.9 percent, prices of fruits, vegetables and dairy products increased by 0.6 percent. Soft drink prices decreased by 0.3 percent.

SLOWING DOWN IN ENERGY INFLATION

Energy prices increased by 0.7 percent in October, following the 5.2 percent increase in September.

Gasoline prices increased by 1 percent in October, following a 9.1 percent increase in the previous month. The annual price increase in gasoline was 37.4 percent.

While electricity prices increased by 0.9 percent and fuel oil prices increased by 2 percent, natural gas prices decreased by 0.8 percent.

SECOND-HAND VEHICLE PRICES DECREASED BY 1.2 PERCENT

Second-hand car and truck prices decreased by 1.2 percent in October. New vehicle prices increased by 0.2 percent monthly.

While transportation services and entertainment prices increased by 0.8 percent separately, motor vehicle insurance prices increased by 0.7 percent.

Health services prices increased by 0.3 percent and hospital services prices increased by 0.8 percent.

REAL WEEKLY EARNINGS HAVE NOT CHANGED

Real average weekly earnings in the USA did not change in October compared to the previous month.

The non-seasonally adjusted CPI index rose to 337,511 in October. The monthly increase in this index was recorded as 0.2 percent.