Consumer Prices Accelerated in September

Consumer Prices Accelerated in September”

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.

The consumer-price index, measuring what Americans pay for everything from groceries to theater tickets, advanced 0.5% in September from a month earlier, the Labor Department said Friday.

CPI climbed to 2.2% in September, from 1.9% in August - missing forecasts of 2.3% but above the 2% level that marks the Federal Reserve's target rate in personal consumption expenditures, its favoured measure of inflation, which stands at just 1.3%.

The price index of a small basket in September 2017 compared to August 2017 was 100.7% and the overall increase since the beginning of the year (September 2017 compared to December 2016) has been 102.1%. Core prices have risen at that same annual rate since May. The shelter index continued to increase, and the indexes for motor vehicle insurance, recreation, education, and wireless telephone services also rose.

Lukman Otunuga, research analyst at FXTM said: "Although US consumer prices made the largest increase seen in eight months on the back of rising gasoline prices, underlying inflation remained subdued".

"That's achievable if we continue to run good quality (data)", outgoing Fed Vice President Stanley Fischer said.

The University of MI also released a report showing an unexpected improvement in consumer sentiment in the month of October. Bulgaria registered an average drop in consumer prices of 0.8 percent in 2016. Core prices had been expected to rise by 0.2%.

We have now seen misses in this series during six of the last seven months and while the Fed will surely stress the "mysterious" nature of low inflation, we are increasingly concerned that the FOMC's insistence on pushing toward a December rate hike risks a policy-error, but we're getting as exhausted of saying that as others are surely of hearing it.

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.

Like this


13 October 2017
SpaceX Launches Communications Satellite, Lands Booster
It was the third time that SpaceX had flown a previously used 1st stage, and the 15th launch this year (with another half-dozen likely by year-end).

13 October 2017
Federal report shows Iowa corn and bean crops missing records
For soybeans, the 2017 harvest in 18 states is ahead of last year on average with 43% harvested this year compared to 41% in 2016. The USDA's soybean yield outlook, meanwhile, was unexpectedly lowered to 49.5 bushels an acre from 49.9 bushels a month.

13 October 2017
Asteroid Passed Close to Earth, Experts Say
Based on the observations they were able to make in 2012, asteroid trackers predicted that it should come back into view in 2017. Rüdiger Jehn, of the Near-Earth Object program, told The Guardian the asteroid passes around the sun every 609 days.

13 October 2017
Several UK Retailers To Extend Pound Coin Deadline
"It is also probably a good idea to avoid giving out the old coin in change in the final few days before the deadline". The production of the new coins follows concerns about round pounds being vulnerable to sophisticated counterfeiters.

13 October 2017
Militant arrested in Tral, south Kashmir
"He was involved in a grenade attack at bus stand Tral in Pulwama on December 5, 2014 in which five people were killed". A case FIR number 121/2014 under section 307/RPC, 2/5 Exp.

13 October 2017
IRS freezes its fraud prevention contract with Equifax
Sign ups for Secure Access accounts have been suspended as a result, but anybody who already has one will not be affected. The message ends by saying "We apologize for any inconvenience".

13 October 2017
India reassures Aussies after rock thrown at team bus
"In a remarkable piece of good fortune, no one was sitting on the seat next to the window when it was broken", CA's report said. Australia opening batsman Aaron Finch posted a photo of a shattered window on a bus on Twitter.

13 October 2017
Brokers Set Expectations for Lam Research Corporation's Q1 2018 Earnings (LRCX)
The stock has "Equal-Weight" rating by Barclays Capital on Friday, May 27. ( NASDAQ:ADSK ), 15 have Buy rating, 2 Sell and 6 Hold. After $0.70 actual EPS reported by QUALCOMM, Inc. for the previous quarter, Wall Street now forecasts -1.43% negative EPS growth.

13 October 2017
Eccentric 'Jeopardy!' champion loses after 12-day winning streak
He'll be back on the show next month, competing in the two-week " Jeopardy! " tournament of champions that begins November 6. He was beaten by Scarlett Sims, a stay-a-home mom from Tennessee.

13 October 2017
Stocks Analysis - KeyCorp (NYSE:KEY), United Continental Holdings, Inc. (NASDAQ:UAL)
UAL's 9-day MACD now sits below the 20-day MACD, indicating that UAL's upside momentum has decreased during the last three weeks. The average investment rating for UAL on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 3.63 or a Hold.