New data shows stronger US economic growth alongside rising inflation ahead of midterms

New data released on October 29, 2026, provides the last comprehensive snapshot of the US economy before the upcoming midterm elections, revealing stronger-than-expected economic growth coupled with higher inflation levels. The report highlights an increase in Gross Domestic Product (GDP) growth, signaling robust economic activity despite persistent inflationary pressures measured by the Personal Consumption Expenditures (PCE) index. This combination suggests a complex economic environment where expansion is occurring but cost pressures remain a key concern for consumers and policymakers alike. Analysts emphasize that the inflation rise could influence Federal Reserve decisions and voter sentiment as the elections approach. The strengthened growth indicates resilience in sectors such as manufacturing and services, contributing to job creation and consumer spending. However, the elevated inflation rate poses challenges for household budgets and future economic stability. Overall, the new US economic data underscores significant themes of growth and inflation that will likely shape the political and economic landscape in the coming months.

CNN