Inflation isn't cooperating. Consumer prices rose 3.7% in September, above the 3.6% economists expected, according to the Bureau of Labor Statistics report released Wednesday.

On a monthly basis, the Consumer Price Index increased 0.6%, matching expectations.

Core inflation, which strips out volatile food and energy prices and is the gauge the Fed watches most closely, rose 0.3% month over month against a 0.2% forecast.

The annual core rate came in at 2.6%, versus 2.5% expected. Both measures of annual inflation still remain above the Federal Reserve's 2% target.

Before the report, traders priced a 22% chance of a second consecutive hike in October, according to the CME FedWatch tool.

This is a developing story…