Price Hikes Slowed in October as the Gas Spike Cooled. Groceries Still Went Up.

Prices are still going up, but the government’s new inflation report shows they rose more slowly in October, mostly because the gas spike that hit drivers in September finally cooled off.

The Consumer Price Index, the government’s monthly measure of what everyday goods and services cost, rose 0.4% in October after jumping 0.6% in September, the Bureau of Labor Statistics reported Tuesday. That was a bit hotter than the 0.3% economists surveyed by Dow Jones expected, CNBC reported.

Gas was the big change

In September, the gas index shot up 9.1% in a single month. In October it rose just 1.0% after the usual seasonal adjustment, and before that adjustment, gas prices actually fell 0.7%, according to the bureau.

That relief at the pump has kept going. The national average fell below $4 a gallon as of Monday, according to GasBuddy data cited by ABC News, after President Trump said the war with Iran is nearly over and oil prices slid. Those November drops aren’t in this report, which only covers October.

Where prices still climbed

Food is the sore spot. The food index rose 0.5% in October after holding flat in September. Grocery prices rose 0.4%, with beef up 0.9%, snacks up 1.0%, and fruits, vegetables and dairy each up 0.6%. Eating out rose 0.5%.

Housing costs, the biggest piece of most family budgets, rose 0.3% and made up more than 30% of the month’s overall increase. Electricity rose 0.9%, and car insurance rose 0.7%.

There was good news in a few corners. Used cars and trucks fell 1.2% for the month, and natural gas service for homes fell 0.8%.

The ‘core’ number

Economists also watch “core” inflation, which leaves out food and energy because they bounce around so much. Core prices rose 0.3% in October, the same as in August and September. Economists had expected 0.2%, CNBC reported.

Why there’s no yearly number

Usually the headline number is how much prices rose over the past 12 months. Not this time. The bureau said it could not collect survey data in October 2025 “because of a lapse in appropriations,” meaning last year’s government shutdown, so it can’t publish a year-over-year rate for most items.

The bureau’s last yearly figure, for September, was 3.7%, still above the Federal Reserve’s 2% goal, as ABC News noted.

What’s next

The next report, covering November, comes out Dec. 10. With gas now under $4 and oil falling as the Iran fighting winds down, that will be the first real test of whether the relief at the pump is spreading to the rest of the shopping cart.