October’s U.S. inflation data came in hotter than expected, strengthening concerns that the Federal Reserve could deliver another interest rate increase in December. Fed Governor Chris Waller has also suggested that policymakers may need to consider a larger 50-basis-point hike if inflationary pressures remain elevated.

While consumer price growth slowed from September’s level, the latest figures still exceeded economists’ estimates and remained above the central bank’s 2% inflation objective. The stronger-than-expected reading has added pressure on the Fed ahead of its final monetary policy decision of the year next month.

Headline Consumer Price Index (CPI) inflation increased 0.4% in October, compared with a 0.6% rise in September. However, the result was higher than the 0.3% increase expected by market analysts.

Core CPI, which excludes food and energy costs, advanced 0.3%, matching September’s increase. Economists had anticipated a smaller 0.2% gain.

The Bureau of Labor Statistics (BLS) did not publish the year-over-year inflation rate because the October 2025 CPI report was missing due to the government shutdown at the time.

Bitcoin extended its downward move after the data release, declining approximately 1% to $73,600. U.S. stock futures also weakened, with Nasdaq 100 futures sliding 1.15% and S&P 500 futures dropping 0.5%, reflecting a broader shift away from risk-sensitive assets.

Treasury markets were already under pressure ahead of the inflation announcement following comments from Fed Governor Chris Waller. He indicated that an additional rate increase could be justified next month even if inflation figures were relatively soft. Waller also raised the possibility of a 50-basis-point adjustment if the CPI report delivered a stronger reading.

Following the announcement, the 10-year Treasury yield gained 6.5 basis points to reach 4.93%. The two-year Treasury yield recorded a larger increase of 14 basis points, climbing to 4.69%. The move suggests that traders are increasingly considering the possibility of a 50-basis-point rate hike during the Federal Reserve’s December meeting.