The Labor Department on Wednesday reported that consumer prices in October rose 2.6% from a year earlier. That marks a pickup in the pace of inflation from September, when prices were up 2.4% on the year.

As expected by economic forecasters, inflation heated up in October. The consumer price index sped up as expected to a 2.6% year-over-year growth rate in October from September's rate of 2.4%. Inflation had been cooling down for most of 2024.

Annual inflation may have risen in October for the first time in seven months, a sign that price increases might be leveling off after steadily cooling for more than two years

Price increases in the US picked up last month, as progress toward stabilising prices appeared to stall. Consumer prices rose 2.6% over the 12 months to October, the Labor Department said. That marked a slight uptick from 2.

The Consumer Price Index, one inflation measure, increased 3.2% over the year in October, a smaller year-over-year increase than in September.

Inflation rose slightly in October in line with economists' expectations, as the consumer price index was up 2.6% from a year ago and 0.2% compared with last month.

The inflation trajectory is likely favorable enough to keep the Fed on track to cut borrowing costs at its next meeting in December. The election of Donald Trump has fueled fears of inflation reigniting if he implements the tariffs he promised on the campaign trail.