US inflation rises to 2.6% in October, raising doubts about further rate cuts

Inflation in the US picked up last month, as progress toward stabilising prices appeared to stall.

The Labor Department says consumer prices rose 2.6% over the 12 months to October, driven by higher housing and food costs.

That marked a slight uptick from 2.4% the month before.

The latest figures added to speculation that the US central bank might not lower rates as much as had been expected in the months ahead.

The Federal Reserve wants to see inflation, the rate at which prices rise, fall back to about 2%.