New government data shows inflation worsening across broad swaths of the U.S. economy, with price pressures spreading far beyond energy costs and forcing Federal Reserve officials to consider more aggressive interest rate hikes.
The Inflation Spread
While October’s 0.4% Consumer Price Index increase represented a slowdown from September, the details reveal alarming trends. Core inflation remained stubbornly high at 0.3% for the third straight month, while services inflation excluding housing accelerated to 0.5%. Food prices also surged, with grocery costs rising 0.4% and restaurant prices jumping 0.5%.
Perhaps most telling: 56.3% of consumer categories now show price increases exceeding a 3% annualized rate – up from 42% just three months earlier. The share of economic sectors experiencing outright price declines collapsed from 43% to 27% since March.
Fed’s Stark Warning
Hours before the CPI release, Federal Reserve Governor Christopher Waller provided unusually specific guidance: if core inflation came in at 0.3% or higher, the Fed should consider a half-percentage-point rate hike in December rather than the standard quarter-point move.
“October core CPI rose exactly 0.3%,” making Waller’s hawkish scenario reality. The governor warned that smaller moves could damage the Fed’s inflation-fighting credibility, especially as research suggests energy shocks now propagate through the economy more powerfully than pre-pandemic.
Energy Pressures Persist
While gasoline price increases moderated to 1% in October following September’s 9.1% spike, broader energy impacts continue rippling through the economy. Oil futures suggest expensive energy may persist, with December 2027 contracts rising from $66 to $77 per barrel since June.
Fed officials appear ready to respond forcefully. As inflation broadens its reach across consumer categories, policymakers seem determined to prevent 1970s-style entrenchment – even if it means faster, larger rate increases that risk economic pain.
Source: www.breitbart.com โ https://www.breitbart.com/economy/2026/11/10/breitbart-business-digest-inflation-is-getting-worse/