The US Personal Consumption Expenditures Price Index increased by 0.5% in September, driving annual inflation up to 3.6% from 3.4% in August.
The inflation rise strengthened market expectations for a Federal Reserve interest rate increase in December, with financial markets pricing in an 84.6% probability.
The Federal Reserve previously left its benchmark interest rate unchanged at 3.75%-4.00% during its Wednesday meeting while noting that inflation remains high.