WASHINGTON (dpa-AFX) - Consumer prices in the U.S. increased by more than expected in the month of October, according to a closely watched report released by the Labor Department on Tuesday.
The Labor Department said its consumer price index rose by 0.4 percent in October after climbing by 0.6 percent in September. Economists had expected consumer prices to rise by 0.3 percent.
The report said prices for shelter grew by 0.3 percent in October, accounting for over thirty percent of the monthly increase by the headline index.
Food prices also rose by 0.5 percent in October after coming in unchanged in September, while energy prices climbed by 0.7 percent in October after spiking by 5.2 percent in September.
'Though energy prices moderated as expected, it was food inflation that drove the forecast miss of last month's headline CPI,' said Bernard Yaros, Deputy Chief U.S. Economist at Oxford Economics.
He added, 'Grocery-store inflation accelerated notably after a string of quiescent readings, underscoring the lags between energy price shocks and nonenergy consumer prices.'
The Labor Department said core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in October, matching the increases seen in the two previous months. Core prices were expected to edge up by 0.2 percent.
Prices for recreation, medical care, motor vehicle insurance, household furnishings and operations and education all increased during the month.
Meanwhile, the Labor Department said prices for used cars and trucks and communication were among the small number that decreased.
The Labor Department noted it is not able to provide data on the annual rate of consumer price growth due to the government shutdown in October 2025.
On Friday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of October.
Economists currently expect producer prices to rise by 0.4 percent in October after jumping by 1.3 percent in September.
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