US inflation hit 3.7% in September as gas prices surged
What's next: The hotter reading could keep Federal Reserve rate hikes in play, even as core inflation held at 2.6%.
US consumer inflation accelerated to 3.7% in September from 3.4% a month earlier, driven largely by a sharp jump in gasoline prices. The monthly consumer price index rose 0.6%, the biggest increase in five months, as gas, clothing and air fares became more expensive. Gasoline prices climbed 9.1% in September and were up 34.2% from a year earlier, accounting for more than half of the monthly increase, while overall energy prices rose 20.4% on the year. Core inflation, which strips out food and energy, came in at 2.6% annually. The data lands ahead of the Federal Reserve's Oct. 27-28 meeting, when investors largely expect officials to hold rates steady while weighing another increase later this year.