Most Gulf stock markets closed higher on Sunday as softer-than-anticipated U.S. inflation data bolstered hopes for a Federal Reserve interest rate cut this week, while Saudi Arabia's index dipped in tandem with oil prices.

U.S. consumer prices increased slightly less than expected in September as a surge in the cost of gasoline was partially offset by a sharp moderation in rents, keeping the Fed on track to cut interest rates again on Wednesday.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

In Qatar, the index gained 0.3%, led by a 1.5% rise in petrochemical maker Industries Qatar, while Barwa Real Estate Company added 0.3% ahead of its nine-month earnings announcement, due later on Sunday.

Qatar Electricity and Water Company retreated 0.4% ahead of nine-month results, also expected on Sunday. Saudi Arabia's benchmark index eased 0.2%, hit by a 0.8% fall in Al Rajhi Bank and a 2.6% slide in Banque Saudi Fransi (BSF), marking its fourth straight session in the red.

On Monday, BSF reported a third-quarter net profit of 1.35 billion riyals ($359.96 million), up from 1.15 billion riyals a year earlier, though it marked a sequential decline.

Elsewhere, Saudi Tadawul Group - the bourse's owner and operator - tumbled 3.4%, following a 41% plunge in quarterly profit.

Oil prices - a catalyst for the Gulf's financial markets - fell on Friday due to questions in the market over the Trump administration's commitment to sanctions on Russia's two biggest oil companies over the war in Ukraine.

Among other losers, oil giant Saudi Aramco was down 0.5%. Separately, the kingdom's investment minister said on Sunday that 85% of the kingdom's targets for its Vision 2030 economic programme were complete or on track as of the end of 2024.

Outside the Gulf, Egypt's blue-chip index advanced 1.1%, hitting a new record high, as most of its constituents were in positive territory including Commercial International Bank , which was up 1.1%.

Saudi Arabia fell 0.2% to 11,593 Qatar added 0.3% to 10,912 Egypt climbed 1.1% to 38,102 Bahrain gained 0.7% to 2,006 Oman was up 0.5% to 5,396 Kuwait eased 0.1% to 9,446 ($1 = 3.7504 riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Helen Popper)