US inflation hit 3.7%, sending Treasury yields and dollar higher

US inflation accelerated more than expected in September, pushing Treasury yields sharply higher, lifting the dollar and knocking stock futures lower as investors bet the Federal Reserve may tighten again soon. Core consumer prices, which exclude food and energy, rose 0.3% from August and 2.6% from a year earlier, both above forecasts. Headline CPI rose 3.7% annually, also topping estimates, with gasoline a major driver but broader price pressures still evident. After the data, the two-year Treasury yield jumped about 7 basis points to 4.872%, while the dollar index gained nearly 0.4%. LSEG data showed markets raised the chance of a Fed rate increase this month to roughly 47%, up from about 20% before the report.