U.S. consumer prices increased more than expected in October as food and shelter costs rose, even as energy inflation slowed considerably.

The Bureau of Labor Statistics reported Nov. 10 that its Consumer Price Index increased a seasonally adjusted 0.4% month-over-month, down from September’s 0.6% gain but above the 0.3% increase forecast by economists polled by Reuters.

Core CPI, which excludes food and energy, increased 0.3% for a third consecutive month. Economists had expected a 0.2% gain.

BLS did not publish October’s headline or core year-over-year readings because the 2025 federal government shutdown prevented collection of the prior-year comparison data. September’s annual headline and core inflation rates were 3.7% and 2.6%, respectively.

Ahead of the release, economists cited by Reuters estimated October annual inflation at approximately 3.9% overall and 2.7% for core prices using substitute comparison indexes. Those were unofficial estimates, and no corresponding BLS annual readings are available to assess whether the forecasts were met.

Shelter prices increased 0.3%, accounting for more than 30% of the overall monthly CPI gain. Food rose 0.5% after being unchanged in September, with grocery prices increasing 0.4% and food away from home climbing 0.5%.

Energy prices increased 0.7%, slowing from September’s 5.2% jump. Gasoline rose a seasonally adjusted 1.0%, compared with September’s 9.1% surge. Electricity increased 0.9%, while natural gas declined 0.8%.

Elsewhere, recreation prices rose 0.8%, motor vehicle insurance increased 0.7% and medical care climbed 0.3%. Used vehicles declined 1.2%, reversing September’s 0.7% increase.

MDM Analysis

October’s slower headline increase offers limited reassurance: energy inflation cooled sharply, but core prices continued rising faster than economists expected. That persistence keeps further Fed tightening in play. For distributors, the report suggests continued pressure on operating costs and customer purchasing power, while providing little reason to anticipate near-term relief in financing costs.

The Bureau’s October Producer Price Index is set to be reported Nov. 13.