U.S. inflation rose 2.6% on an annual basis last month, representing an uptick from September when the Federal Reserve began cutting interest rates amid signs of cooling prices and a weaker labor market. 

That matched forecasts from economists polled by FactSet that the Consumer Price Index rose 2.6% in October. The CPI rose 2.4% in September, when the Fed ushered in a jumbo rate cut of 0.5 percentage points, followed by a second rate cut this month.

The slight rise on a month-over-month basis signals that the Fed’s battle to tame inflation to its goal of a 2% annual rate might take a bumpy path over the next months. Some types of goods and services, from housing to insurance products, are still experiencing sharply higher prices, crimping consumers’ budgets and creating economic headwinds. 

“Looking ahead to the next six months, we foresee consumers and businesses still spending but doing so more prudently amid still-elevated costs and rates,” noted EY chief economist Gregory Daco in a November 11 research note. 

—This is a breaking story and will be updated.