US Inflation Accelerates in September, Driven by Soaring Energy Costs, Boosting Fed Rate Hike Expectations

The US Consumer Price Index (CPI) rose sharply in September, with overall inflation accelerating to 3.7%. Gasoline prices, which surged 9.1% during the month, accounted for over half of this increase. Core CPI, excluding volatile food and energy components, increased by 0.3% from August to September, an annualized pace above the Federal Reserve's 2% target. This stronger-than-expected inflation data has revived expectations for a potential Federal Reserve interest rate hike later this month, leading the US dollar to hit an 18-month high.