US inflation heats up in September; Fed rate hike this month back on table

In September, US consumer prices rapidly increased as gasoline costs surged, delivering another setback to President Donald Trump and his Republican Party ahead of the November midterm elections. This development has brought the Federal Reserve's interest rate hike later this month back into focus. The September Consumer Price Index report from the Labor Department revealed a widening of price pressures beyond energy, prompting concerns among economists that underlying inflation might become more persistent.

Financial markets now view the Fed's interest rate decision this month as a closer call compared to before the data was released, complicating the road back to price stability.