Inflation and higher oil prices added cost pressure; markets priced in a low chance of an October Fed hike

In its October 20 report, CREFC said September CPI rose 3.7% year over year, gasoline prices jumped 9.1%, and final-demand PPI rose 1.3%. The October 14 Beige Book said consumer-facing firms reported tighter margins amid higher oil prices. On October 16, market pricing put odds of an October 27–28 Fed hike at 17%.