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MNI BRIEF: US Sept CPI Slightly Firmer Than Expected


U.S. CPI rose 0.396% in September and 3.7% from a year ago, the Bureau of Labor Statistics reported Thursday, a tenth higher than markets expected, while core CPI added 0.323% and 4.1% over the month and year, respectively, in line with expectations. The three-month annualized rate for core CPI rose to 3.1% in September from 2.4% the previous month.

The Labor Department in a separate report said 209,000 people filed for initial jobless claims in the week ending Oct 7, the same as the week before and a tad lower than the 210,000 expected. Traders drove higher pricing of the Fed's terminal policy rate to 9.5bp above current levels and priced in a slightly lower 53bp of cuts through next September. The dollar also strengthened on expectations that the Fed would keep rates restrictive for some time. (See MNI: Most of FOMC Saw One More Hike This Year -- Fed Minutes)

Shelter accounted for over half of the headline CPI rise, increasing 0.6% in September after 0.3% the previous month. Hotel prices rebounded 3.7% in September after three straight decreases. Auto insurance added 1.3% and the medical care index rose 0.2% in the month. Used cars and trucks prices fell 2.5% in September and apparel declined 0.8%.

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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