U.S. October CPI came in above expectations across the board, hitting the threshold for sharp interest rate hikes mentioned by Fed Governor Waller.

U.S. headline and core monthly inflation rates both came in above expectations in October, which may lead the Federal Reserve to hold steady on its interest rate hike path next month. Data released Tuesday by the Bureau of Labor Statistics (BLS) shows that the consumer price index (CPI) excluding food and energy rose 0.3% month-over-month, while overall prices increased by 0.4%. Due to data collection disruptions during last October’s government shutdown, the BLS did not release year-over-year changes. The report notes that price pressures continued to mount ahead of the midterm elections this month, where Democrats—who focused their campaigns on cost-of-living issues—retook control of both chambers of Congress. This year, the Iran war, tariffs, and the data center boom have all fueled inflation. This is the final CPI report Federal Reserve officials will review ahead of their December 8-9 policy meeting. Investors expect the Fed to raise interest rates at this meeting to tackle inflation. Ahead of the report’s release, Federal Reserve Governor Christopher Waller said that if core CPI rises by 0.3% or more, the Fed may need to implement a 50-basis-point rate hike.