Despite some relief from fuel prices due to the US war against Iran, inflation remained high.
Published November 10, 2026
U.S. consumer prices rose more than expected in October, even as concerns about the long-term impact of the Strait of Hormuz closure on global markets eased to some extent and gasoline prices fell to a four-month low.
The U.S. Department of Labor’s Bureau of Labor Statistics said in its latest report released Tuesday that the all-item consumer price index (CPI) rose 0.4% in October, continuing the inflationary trend since July. The average cost of shelter, as well as food, rose in October, according to the agency.
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Despite downward pressure on energy prices, the Labor Department report was higher than the Cleveland Fed, which predicted a 0.2% rise in the CPI, and a FactSet survey of economists, which predicted a 0.3% rise.
On Monday, US President Donald Trump said future military action against Iran is unlikely. President Trump said, “Iran is effectively finished militarily.” “We’re just maintaining the status quo, and that’s actually being done at the request of our neighbors.”
The average price of a gallon of gasoline fell below $4 ($1.06 per liter) for the first time since July, according to the American Automobile Association. However, the average price is now $3.98, significantly higher than a year ago at $3.07. On February 28, when the United States and Israel first attacked Iran, the average price of a gallon of gasoline was $2.98 ($0.78 per liter).
Concerns about the economy and the cost of living were top concerns among voters in the November 3 midterm elections, with Republicans losing control of both houses of Congress. A Reuters/Ipsos poll released on the eve of the election found that 78% of voters said the cost of living was a very important or most important issue when considering how to vote. According to the poll, 43% of voters supported Democrats, while 32% wanted a Republican response.
How voters view Mr. Trump himself has also become significantly more negative since the post-war period and its impact on the economy. A Reuters/Ipsos poll found that just 32% of voters approved of his job performance, just one percentage point higher than last month’s record low of 31%.
President Trump’s Republican Party suffered major defeats in the midterm elections, losing typical Republican seats in states such as Texas and Kansas.
Not only Trump himself, but key members of his administration, including Vice President J.D. Vance, have acknowledged that the war against Iran contributed to his election loss.
