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U.S. inflation report highlights strain of rising food, energy and housing costs

PBS • November 10, 2026 • business

Key Points:

Inflation rose by 0.4% last month, driven mainly by higher food, energy, and housing costs, contributing to ongoing financial pressure on American households.
Austan Goolsbee, Chicago Fed president, described the inflation report as "borderline disturbing," noting that persistent services inflation is not primarily due to transitory factors like oil prices or tariffs.
The Federal Reserve's primary tool to combat inflation is adjusting interest rates, but rising costs from sectors like AI data center investments are adding demand-side inflationary pressures.
Goolsbee expressed concern that if high inflation becomes entrenched in expectations, it will be more difficult and painful to reduce, emphasizing the need to bring inflation back to the 2% target.
While hesitant to predict specific rate moves, Goolsbee indicated that all options remain on the table as the Fed seeks to address inflation that continues to run above target despite a stable job market.

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