Inflation rose more than expected last month — dimming hopes for another big rate cut from Fed

Inflation came in hotter than expected last month — dimming hopes for another big interest rate cut from the Federal Reserve next month.

The Consumer Price Index rose 2.4% versus a year ago in September, slightly above the 2.3% increase economists had expected, the Labor Department said on Thursday.

Month-over-month, the CPI rose 0.2% — steeper than the 0.1% increase economists had expected but even with the 0.2% number from August.