US inflation rose to 2.6% in October, matching expectations and up from 2.4% in September, while core inflation (excluding food and energy) remained steady at 3.3%. Monthly inflation showed persistent pressures, rising 0.3% for the third consecutive month. The Federal Reserve, which has cut rates by 0.75 percentage points recently, faces a balancing act: taming inflation without stifling economic growth. Markets now predict a small rate cut in December. While inflation is far below its 2022 peak of 9%, progress has slowed, with housing costs driving half of October’s price increase.