What happened
The consumer price index increased 0.4 percent in October compared with September, the Labor Department said Tuesday. The rise exceeded economists' forecast of 0.3 percent.
Core prices, which exclude food and energy, rose 0.3 percent, also above the expected 0.2 percent increase.
Shelter costs climbed 0.3 percent and accounted for more than thirty percent of the overall monthly increase. Food prices rose 0.5 percent, with grocery prices up 0.4 percent and restaurant prices up 0.5 percent.
Energy prices increased 0.7 percent over the month, following a 5.2 percent jump in September. Gasoline prices alone rose 1 percent.
Other categories also saw notable increases. Household furnishings rose 0.7 percent, major appliances jumped 1.4 percent, and medical drug prices increased 0.4 percent after recent declines. Recreation and hospital services both jumped 0.8 percent, while hotel and motel prices rose 0.7 percent.
The stronger-than-expected inflation data led investors to increase bets that the Federal Reserve will raise interest rates when it meets next month, with some market participants now expecting a half-percentage-point increase rather than the previously anticipated quarter-point move.
