Fresh Inflation Data Tests Trump Economic Agenda

Clear Facts

• Inflation rose 0.4 percent month-over-month in October, according to the Bureau of Labor Statistics.
• Energy prices increased 0.7 percent, while shelter costs rose 0.3 percent and food prices rose 0.5 percent.
• A Barclays survey found 57 percent of Americans list the cost of travel or gifts as a top holiday stressor.

The Bureau of Labor Statistics released its October inflation report Tuesday. The data showed a 0.4 percent month-over-month increase, above the 0.3 percent analysts had expected. The report comes as President Trump prepares to work with a new Democratic majority in Congress.

Energy costs cooled from September’s 5.2 percent jump to 0.7 percent in October. Shelter costs rose 0.3 percent, and food prices climbed 0.5 percent. The government shutdown last year prevented year-over-year comparisons.

“The Stock Market suffered one of the Worst Days in History based on the results of the Election,”

“Such a sad thing to watch! It took so much work to get us to a level that no one has ever seen before, and then this. Your 401(k)s have, therefore, dropped. Remember, it wasn’t Republicans, it was Dumocrats. Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.”

Democrats won control of Congress in the midterms by promising to tackle affordability. President Trump has signaled openness to working with Democrats on immigration and economic policy.

“We will own the economy,”

“We have so far this year, we’ve got a million private sector jobs. We’ve never had this many people working in the U.S. The net worth of American households are the highest that it’s ever been. So, Kristen, let’s be clear here. This is an energy supply side shock. We will get to the other side of this.”

Treasury Secretary Scott Bessent attributed the price spike to an energy shock from the war in Iran that disrupted oil shipments through the Strait of Hormuz. He noted the 21.5 percent cumulative price increase under former President Biden before inflation cooled under Trump.

The hotter-than-expected inflation reading adds pressure on the Federal Reserve as it weighs its next interest rate decision. The October jobs report showed 165,000 new positions, strengthening arguments for a possible rate hike.

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