New inflation data out Tuesday showed consumer prices rose as forecast in October, keeping the Federal Reserve on track to lower interest rates again in December.

The latest data from the Bureau of Labor Statistics released Wednesday morning showed that the Consumer Price Index (CPI) increased 2.6% over the prior year in October, a slight uptick from September's 2.4% annual gain in prices. The yearly increase matched economist expectations.

The index rose 0.2% over the previous month, matching the increase seen in September and also on par with economist estimates.

On a "core" basis, which strips out the more volatile costs of food and gas, prices in October climbed 0.3% over the prior month, matching September, and 3.3% over last year for the third consecutive month.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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