Inflation in the United States ticked up in October, driven by costlier rents, used cars and air fares, a sign that price increases might be leveling off after having slowed in September to their lowest pace since 2021.

U.S. consumer prices increased as expected in October amid higher costs for shelter such as rents, and progress toward low inflation has slowed in recent months, which could result in fewer interest rate cuts from the Federal Reserve next year.

Inflation in the US picked up last month, as progress toward stabilising prices appeared to stall. Consumer prices rose 2.6% over the 12 months to October, driven by higher housing and food costs, the Labor Department said. That marked a slight uptick from 2.4% the month before.

US consumer inflation edged higher last month spurred by an increase in housing costs, according to government data published Wednesday, complicating the US Federal Reserve’s plans to cut interest rates.