Boston Fed president Susan Collins said she expects that it will be appropriate to raise rates further before the end of the year to ensure a timely and durable return of inflation to the Fed's target.

Delivering remarks in Boston on Tuesday, Collins said while recent inflation readings include some promising news, other developments have been less favorable.

Collins said she expects both total and core inflation to again run above the Fed's 2% target in the coming months, given the jump in prices of refined energy products. In addition, Collins said price pressures tied to data center projects will likely continue.

Collins did not lay out a specific timeline for when further policy adjustments may occur. Some officials, including Fed president John Williams and Vice Chair Philip Jefferson have also signaled support for leaving rates unchanged this month after voting to tighten policy in September.

"My view of the need for further policy action, and the appropriate timing, will depend importantly on how the totality of incoming data shapes my outlook and the associated balance of risks," a published text of Collins remarks said.

Collins said it will be important to monitor whether elevated inflation remains largely confined to energy and AI-buildout categories, while price growth continues to moderate elsewhere, or whether evidence of price pressures broadens.

Odds for at least one rate hike by the end of the year recently stood around 88%, up from 78% one month ago, according to CME's FedWatch tool.

More information on price pressures will come Wednesday, when the The Labor Department releases the consumer price index report. Economists polled by The Wall Street Journal expect the 12-month consumer inflation rate to rise to 3.6%. Excluding food and energy prices, the rate is expected to rise 2.5%.