Consumer prices rose at a slower pace in October than the previous month, government estimates published on Tuesday indicate.

The consumer price index (CPI), which increased 0.6% across all categories in September, rose 0.4% last month on higher food and shelter costs. Energy costs decelerated, increasing just 0.7% over the month compared to 5.2% in September, according to the Bureau of Labor Statistics.

Core inflation, which strips out volatile food and energy prices, notched 0.3% growth, matching August and September levels that were the highest since April, in the early days of the ongoing Iran war. Core services prices rose 0.3% while core goods were up 0.2%.

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After accelerating in September, consumer prices in October continued to trend in the wrong direction. Economists polled by Reuters and Dow Jones had projected 0.4% growth across all categories and just a 0.2% rise in core inflation.

No annual change in inflation was reported because last October the BLS did not distribute its monthly survey due to a federal government shutdown that began on Oct. 1 and lasted until Nov. 12 — the longest in U.S. history at 43 days.

“Price pressures remained broad across goods and services, suggesting businesses across the economy are passing higher costs through to consumers,” noted Sam Williamson, senior economist at First American Financial Corp., in commentary shared with Scotsman Guide.

Recreation, medical care, motor vehicle insurance, household furnishings and operations all saw higher prices last month, according to the BLS, offering evidence of inflation’s broadening effects amid Iran war impacts, Trump administration tariffs, strong economic growth and labor supply disruptions, among other cost pressures.

Ahead of November midterm elections that saw Democratic candidates win back majorities in both the U.S. Senate and House of Representatives, the Federal Reserve held its benchmark interest rate unchanged when the rate-setting Federal Open Market Committee (FOMC) last convened in late October.

That decision produced two formal dissents from officials who would have preferred to raise the fed funds rate — now in a range of 3.75% to 4% — by a quarter-point.

An increase is now highly anticipated to occur at the FOMC’s December meeting, however, in the wake of stubbornly high inflation and strong jobs data for October that crushed analysts’ expectations when it landed last week.

The unemployment rate ticked down last month to 4.1% as employers added an estimated 165,000 jobs last month and prior month totals were revised upward by 84,000.

“With the labor market showing remarkable resilience and inflation moving in the wrong direction, policymakers have fewer reasons to hold back,” added Williamson.

Following the release of October inflation data on Tuesday morning, market-implied odds of a quarter-point hike in December jumped to nearly 88% from about 77% a week ago, according to CME FedWatch, which tracks fed funds futures prices.