**MNI DATA IMPACT: US Sep CPI Flat, Core Weaker +0.1%>

--Owners Equivalent Rent +0.3%; Energy Prices Down -1.4%

By Brooke Migdon

     WASHINGTON (MNI) - The September CPI data were weaker than 

expected with energy prices weighing down headline inflation, data 

released Thursday by the Bureau of Labor Statistics showed. 

     Overall CPI slowed to a flat reading, below market expectations 

which had called for a 0.1% gain. Core prices rose 0.1%, also below 

expectatsions for a 0.2% increase. Year/year core prices held steady at 

2.4%.   

     The headline year/year rate remained at 1.7%, matching August's 

increase. Excluding only energy, the year/year rate was 2.3%.

     Here are some of the key takeaways from the data released Thursday: 

     - The core CPI reading was 0.132% unrounded, on the high end 

of a 0.1% reading. 

     - The large owners' equivalent rent category increased 0.3%, 

bringing the year/year rate up to 3.4%. Recreation prices were flat 

after rising 0.5% August and used vehicle prices declined by 1.6%. 

     - Energy prices plummeted by 1.4% in September, its fourth decline 

in the past five months. Gasoline prices fell 2.4% in September after a 

3.5% decline in August. Electricity prices were unchanged and natural 

gas prices fell 0.7%. Excluding energy prices, headline CPI would have 

been 0.1%. 

     - Food prices rose 0.1% after three consecutive flat readings and 

food away from home prices rose 0.3% in September following a 0.2% gain 

in August. Excluding only food, CPI would have still been flat.

     - Apparel prices fell by 0.4% in September after rising for 

three straight months, but incoming China tariffs now target U.S. 

consumer goods and should push up costs in the near future.                                                                                  

     ** MNI Washington Bureau: 202-371-2121 ** 

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