Inflation in the United States continues to be a significant issue, with October seeing a 0.4% rise in the Consumer Price Index, marking the third month of higher-than-expected inflation. Core inflation, which excludes food and energy, rose 0.3%. Contributing factors include the Iran war, tariffs, and increased AI investments. Despite a strong labor market, inflation has outpaced wage growth for three months, affecting workers' purchasing power.
Key facts
- Consumer Price Index rose 0.4% in October 2026.
- Core CPI increased 0.3% for the third consecutive month.
- Estimated annual inflation rate is 4%, up from 3.7% in September.
- Gasoline prices increased by 1% in October.
- Food prices rose, with grocery prices up 0.4%.
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