A fresh inflation report came in worse than expected, adding pressure on the Fed and rattling markets.

• October consumer prices rose more than forecast, and even the "core" number (which strips out food and energy) came in hot, pointing to broader price pressure.
• Stocks dipped on the news, extending a tech-sector pullback tied to worries that heavy debt-fueled spending on AI has gotten overextended.
• Some forecasts now call for inflation to accelerate well beyond current levels in the coming years, partly blamed on heavier government spending and stimulus.
• Housing is expected to take a hit too, since the Fed may need to keep rates high or raise them further, and some sellers are already pulling listings off the market hoping conditions improve by spring.

Outlook: Expect continued pressure on the Fed to keep rates elevated, with stocks and housing likely to stay under strain if inflation keeps surprising to the upside.