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, as measured by the producer price index, rose six tenths of a percentage point to 2.4% for the year ending in October, the Bureau of Labor Statistics reported Thursday, a troubling sign that inflation pressures remain strong.

The annual rate of inflation moved higher last month for the first time since March, as expected — but economists say the underlying trend remains favorable for another round of interest rate cuts.