Fed rate hike seen more likely after inflation data

Oct 14 (Reuters) — A Federal Reserve interest-rate decision later this month may be a closer call than previously thought, traders bet on Wednesday, after Labor Department data showed consumer inflation last month rose 3.7%, faster than expected. Traders had priced interest-rate futures for about a 22% chance of an October rate hike. After the report, which also showed faster underlying inflation than economists had anticipated, the implied probability of a rate hike at the Fed's October 27-28 meeting rose to around 40%. (Reporting by Ann Saphir. Editing by Mark Potter) ((Ann.Saphir@thomsonreuters.com; 312-593-8342)