Oct 14 (Reuters) - A Federal Reserve interest-rate decision later this month may be a closer call than previously thought after Labor Department data showed consumer prices were up 3.7% last month from a year earlier, well above the Fed's 2% target and moving in the wrong direction. Higher gasoline prices from the Middle East war were a main driver. Excluding volatile food and energy prices, the core Consumer Price Index (CPI) was up 2.6%, more than the 2.5% economists polled by Reuters had projected. The Fed lifted the policy rate in September to a target range of 3.75%-4.
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