Inflation throttled back in October from its blistering pace in September amid a more moderate rise in gasoline prices, but remained high as categories like food and housing put upward pressure on consumer prices.
The consumer price index, an inflation barometer, rose 0.4% on a monthly basis in October, after adjusting for seasonal factors, the Bureau of Labor Statistics reported Tuesday. That's down from 0.6% in September but higher than the 0.3% that economists expected.
"It's uncomfortably high," said Mark Zandi, chief economist at Moody's. "The Fed's not going to be happy about it. It certainly makes it more likely we get another rate increase in December."
The Federal Reserve uses inflation data to guide its interest rate policy. The U.S. central bank raised rates in September amid a recent pickup in inflation, which economists largely attribute to the war in Iran. It held rates steady at its last meeting in October.
Economists generally assess a measure known as "core" CPI — which strips out volatile food and energy prices — to examine underlying inflation dynamics in the U.S. economy.