JPM economist Zina Bushra Sajid.......>

US DATA REACT: JPM economist Zina Bushra Sajid said that "rising energy prices

boost import prices in August," noting that the "import price index moved up

0.6% in August, slightly above expectations (consensus: 0.4%, JPM: 0.5%). The

year-ago rate accelerated to 2.1% from 1.2%. The monthly gain was driven largely

by a 4.2% increase in prices of imported energy. Away from energy, import prices

also surprised modestly to the upside (0.3%), and the year-ago rate firmed from

0.7% to 1.0%."

- The econmist added that "within the ex-fuels measure, food prices increased

modestly (+0.3%). Prices of nonfuel industrial supplies rose 0.8% following weak

outturns in the prior three months. Prices of core industrial supplies had been

trending lower in recent months. This category tends to track Chinese producer

prices, which had cooled between April and July."