Inflation heated back up in September, with the Consumer Price Index coming in at a hotter-than-expected 3.7% annual reading, driven primarily by surging fuel prices.
But even “core” inflation, which excludes energy and food, increased more than economists projected, rising 2.6% annually, up from 2.4% in August.
The latest figures complicate the Federal Reserve’s task of bringing down inflation to its 2% target. Traders had widely been expecting the Fed to hold interest rates steady at its meeting later this month, but odds of a hike are now rising on the September data.
Molly Moorhead | Yahoo Finance