What happened
The Labor Department released its October Consumer Price Index report on Tuesday, showing that the costs of goods and services increased more than economists had anticipated.
Headline CPI rose 0.4 percent from the previous month, exceeding the 0.3 percent forecast. Core CPI, which excludes food and energy, climbed 0.3 percent for the third consecutive month.
The report arrives as the Federal Reserve weighs its next interest-rate decision. Fed Governor Christopher Waller said on Tuesday morning that a hotter-than-expected inflation reading could lead him to support a half-point rate increase in December. Analysts now project at least a quarter-point hike.
Stock markets reacted negatively to the data. The Dow Jones Industrial Average, S&P 500, and Nasdaq all declined amid concerns that persistent inflation could lead to continued rate increases.
The article also notes that political analysts attribute part of the Republican Party's losses in last week's midterm elections to higher costs associated with the Iran War.
