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.

Inflation rose two-tenths of a percentage point to 2.6% for the year ending in October, the Bureau of Labor Statistics reported Wednesday in an update to the consumer price index, the first rise in annual inflation in six months.

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

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.

A measure of underlying U.S. inflation remained firm in October, underscoring the ongoing risks Federal Reserve officials face in trying to bring

Consumer prices rose 2.6% from a year earlier, up from 2.4% in September. It was the first increase in annual inflation in seven months. From September to October, prices edged up 0.2%.

The latest inflation report is a sign that price increases might be leveling off after having slowed in September.