The Federal Reserve's preferred inflation gauge rose 3.6% in the year to September, CNBC, Fox Business and Yahoo Finance report. The figures come from Commerce Department data released Thursday.

The personal consumption expenditures price index rose 0.5% from August, the Bureau of Economic Analysis release shows. CNBC says that was the biggest monthly jump since March. Core prices, which leave out food and energy, rose 0.3% on the month and 3.1% on the year. In August, the yearly rates were 3.4% for all prices and 3.0% for core, Fox Business and Yahoo Finance report.

Energy drove much of the rise. Gasoline and other energy goods jumped 9.2% in September, and prices for services other than energy and housing rose 0.4%, CNBC reports. The Fed aims for 2% inflation.

The economy grew at a 3.4% annual pace from July through September, up from 2.2% in the spring, the bureau says. Growth came from business investment, consumer spending and government spending. CNBC says forecasters expected 3.1%, while Fox Business cites a 3.2% forecast. CNBC links much of the investment to the artificial intelligence build-out.

Personal income rose 0.2% in September and spending rose 0.5%, the bureau says. After inflation, spending barely grew. The savings rate slipped to 3.8%, down from 4% in August, Fox Business reports.

The data came a day after the Fed held its key rate at 3.75% to 4%. On Thursday morning, the CME FedWatch tool showed a 79.6% chance of a quarter-point hike in December, Fox Business reports. That was down from 84.2% on Wednesday but up from 73.3% a week earlier. Yahoo Finance says markets are pricing in a better than 80% chance. "Today's data strengthens the case for another rate increase in December," Chris Osmond of Fifth Third Wealth Advisors said in Yahoo Finance's report.

What we know: Inflation rose to 3.6% in September, and the economy grew 3.4% last quarter.
What we don't: Whether the Fed will raise rates at its December meeting.