US Consumer Prices Rise Slightly Less Than Expected In September

The US dollar has some momentum into the retail sales and CPI numbers. What to watch for

Retail sales rose 1.6% in September after falling 0.1% in August following the hit to consumer activity in the hurricane hit states of the south - most notably Texas and Florida.

USA consumer prices recorded their biggest increase in eight months in September as gasoline prices soared in the wake of hurricane-related refinery disruptions, but underlying inflation remained muted.

The increase in gasoline prices was the largest since June 2009 and followed a 6.3 percent rise in August. Core prices had been expected to rise by another 0.2 percent.

Gasoline prices spiked by 13.1 percent due to Hurricane Harvey and accounted for about three-fourths of the increase by the headline consumer price index. Economists had expected prices to increase by 0.6 percent.

The lower monthly core CPI partly reflected a drop back in vehicle and drug prices that are unlikely to be sustained in the months ahead, said Michael Pearce at Capital Economics, so the September CPI report "is unlikely to stop the Fed hiking rates again in December". The shelter index continued to increase, and the indexes for motor vehicle insurance, recreation, education, and wireless telephone services also rose.

The all items index rose 2.2% for the 12 months ending September; the 12-month change has been accelerating since it was 1.6% in June.

"While a December rate hike had seemed a strong probability after last Friday's solid wage growth data, the picture now looks much more finely balanced", said John Dolan, senior dealer at FEXCO Corporate Payments.

He added, "Once those factors fade in early 2018, and against the backdrop of exceptionally tight labor market, we suspect that core inflation will rebound in 2018".

The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after edging up by 0.2 percent in August. The energy index rose 10.1% in the last twelve months.

Spot gold added 0.1 percent to $1,293.37 an ounce. The inflation rate since the beginning of the year (September 2017 compared to December 2016) has been 1.3% and the annual inflation in September 2017 compared to September 2016 was 2.1%.

On a year-over-year basis, it rose by 2.2%, which was above the prior month's reading of 1.9%, but below expectations of 2.3%.

Related:

Comments

Latest news

Guwahati stone-throwing incident not reflective of our security measures: Rajyavardhan Rathore
Australian opener Aaron Finch took to the micro-blogging website Twitter to post a picture of the bus window glass shattered by the rock.

Analysts Showing Optimistic Trends For Netflix, Inc. (NFLX)
He believes Netflix beat subscriber estimates for the third quarter and that it will do so again for the fourth quarter. The return on assets stands at 6.4%, Return on Equity now is 16.9% and the Return on Investment value is 12.9%.

These New 'Avocado Lights' Have Way Less Fat Than Regular Avocados
Avocados' rich, creamy texture is caused by their high fat content - an average fruit has between 20-30g of fat. From Instagram posts to morning smoothies, you can not seem to escape the avocado in 2017.

A Look at Price Fluctuation of Hostess Brands Inc (TWNK)
The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink . The company was formerly known as Gores Holdings, Inc. and changed its name to Hostess Brands, Inc .in November 2016.

Antonio Conte denies Chelsea exit claims
The Blues boss was interviewed by RadioUno where he supposedly said: "Not a doubt in my mind that I will be home before long". Chelsea manager Antonio Conte has denied reports which suggested that he is looking to leave the club in the near future.

Other news