Price pressures persisted in October

Data: Bureau of Labor Statistics ; Chart: Courtenay Brown/Axios Inflation remained hot in October, according to data from the Labor Department released on Tuesday. Why it matters: The Consumer Price Index shows that even as gasoline prices steadied, inflation pressures elsewhere remained stubborn. By the numbers: CPI rose 0.4% last month, slowing from the 0.6% increase in September. Gasoline prices gained 1% in October, a sharp slowdown from the 9.1% surge in September, the Labor Department said. 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. Of note: The Labor Department did not publish year-over-year inflation rates for October. Last year's government shutdown left a gap in the data that prevents direct comparisons with October 2025. 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. That compares with September's annual inflation rate of 3.7%, or 2.6% excluding food and energy. The big picture: The inflation report was already shaping up to be a crucial piece of the Federal Reserve's interest rate decision next month. But the stakes grew just hours before its release when Fed governor Christopher Waller raised the prospect of a larger-than-usual rate hike if inflation remains stubbornly elevated. 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 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. What to watch: The report also offers a fresh measure of the inflation problem that helped shape last week's midte