The U.S. inflation rate ticked up in October, reaching 2.6% annually. This increase follows months of persistently low inflation below the Federal Reserve’s 2% target. The rise in inflation is attributed to rising costs for energy and food. As the Fed considers the possibility of an interest rate cut, the latest inflation data will be closely analyzed to assess its potential impact on future monetary policy decisions. While higher inflation may warrant a more hawkish approach, the Fed must also balance its efforts to encourage economic growth.