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STORY: U.S. consumer prices increased modestly in October, which could result in fewer interest rate cuts from the Federal Reserve next year.

The consumer price index, out Wednesday from the Labor Department, rose 0.2% for the fourth straight month, in line with economists' expectations.

That put the annual inflation rate at 2.6% - down considerably from a peak of 9.1% in June of 2022, but still above the Fed's 2% target.

More than half the increase came from the cost of shelter - which includes rents as well as hotel and motel rooms.

Frustration over inflation helped to propel Republican Donald Trump to victory in last week's presidential election over Democratic Vice President Kamala Harris.

Economists, however, are forecasting higher inflation next year if Trump forges ahead with his economic policies, including tax cuts and higher tariffs on imported goods.

Though the U.S. central bank is still expected to cut interest rates again in December, economists see the scope for more cuts next year as limited.

After Wednesday's warmer CPI report, one economist told Reuters (quote) "It is clear that the Fed's job is still unfinished."