Trial now

BLOCK, Call Spd Sale


Mixed Wing Trade


Consolidate some of the post Fed sell off


More hawkish play

--5 Things We Learned From The September CPI Data
By Kevin Kastner and Shikha Dave
     WASHINGTON (MNI) - The following are the key points from the 
Consumer Price Index data for September released by the Bureau of Labor 
Statistics Thursday: 
     - September CPI rose 0.1% month/month overall, lower than the 0.2% 
gain expected by both markets and analysts. Before rounding it was 
+0.059%, on the low side of 0.1%. Core prices were also below 
expectations with a 0.1% gain and a steady year/year rate, so the market 
reaction should reflect relief that tariffs and Hurricane Florence did 
not push up inflation. 
     - Core CPI was +0.116% unrounded, so on the high side of +0.1%, 
with the major components mixed. The large owners' equivalent rents 
category rose 0.2%, while apparel prices were up 0.9% and medical care 
prices rose 0.2%. However, prices of new vehicles fell 0.1% and used 
vehicles fell 3.0%. 
     - MNI analysis showed analysts have a tendency to overestimate core 
CPI by a small margin, so today's release maintains that trend. The data 
suggest a downside risk for core PCE prices when they are released later 
in the month. 
     - The y/y rate for headline CPI fell sharply to 2.3% in September 
vs 2.7% in August, while the y/y rate for core CPI stayed at 2.2%. 
Overall, the data suggest steady inflation growth, keeping the FOMC on 
its gradual rate hike path. 
     - Energy prices fell by 0.5% in September after a 1.9% surge in 
August, with gasoline prices down 0.2%, electricity prices down 0.5% and 
gas utilities prices down 1.7%. CPI excluding only energy was still up 
0.1%, while food prices were flat. 
     ** MNI Washington Bureau: 202-371-2121 **