U.S. September Inflation Tops Expectations at 3.7%

U.S. consumer prices rose more than expected in September, with the headline and core readings both exceeding forecasts and giving markets a fresh signal on the path of interest rates.

The Consumer Price Index increased 3.7% from a year earlier, compared with expectations for a 3.6% rise. Core CPI, which excludes food and energy prices, climbed 2.6% year over year, above the 2.5% forecast.

Both figures were annual rates. The figures show inflation running above the expectations cited for September. The release provides a new data point for markets assessing the interest rate outlook.