US inflation expected to hit 3.6% in September, shaping Fed rate decision

US inflation is expected to rise to 3.6% in September, driven by higher gas prices, with the CPI report due Wednesday potentially shaping the Federal Reserve's October rate decision. Economists forecast annual inflation to climb from 3.4% in August, with monthly prices up 0.6%, while core inflation, excluding food and energy, is seen rising to 2.5%. Record gasoline prices of $4.33 per gallon are a key factor, and traders see a 76% chance the Fed leaves rates unchanged at its October 28 meeting. A stronger-than-expected core reading of 0.3% could revive rate hike speculation, while weak September job growth of 29,000 adds pressure. Rising costs for airfares, hotels, and diesel pose upside risks to inflation.