*SCALPSWINGSTRADDLE*

[Zephyr]

Producer Price Index
Released On 10/29/2013 8:30:00 AM For Sep, 2013
Prior Consensus Consensus Range Actual
PPI - M/M change 0.3 % 0.2 % -0.2 % to 0.4 % -0.1 %
PPI -Yr/Yr change 1.4 % 0.3 %
PPI less food & energy - M/M change 0.0 % 0.1 % 0.0 % to 0.2 % 0.1 %
PPI less food & energy - Yr/Yr change 1.2 % 1.2 %
Highlights
Producer price inflation eased at the headline level but firmed a bit at the core. The September producer price index declined 0.1 percent after rising 0.3 percent in August. The consensus called for a 0.2 percent gain. The core rate, which excludes both food and energy, firmed to 0.1 percent after no change in August. The market forecast was for a 0.1 percent increase.

Food prices fell 1.0 percent in September after jumping 0.6 percent the month before. Energy increased 0.5 percent, following a surge of 0.8 percent in August. Gasoline prices dipped 0.1 percent after spiking 2.6 percent in August.

A 0.6 percent increase in prices for motor vehicles led the advance in the finished core index.

For the overall PPI, the year-ago rate decelerated to 0.3 percent from 1.4 percent in August (seasonally adjusted). The core rate held steady at 1.2 percent in September. On a not seasonally adjusted basis for September, the year-ago headline PPI was up 0.3 percent, while the core was up 1.2 percent.

Inflation at the producer level remains very soft, leaving the Fed plenty of room to keep quantitative easing in place.