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Zephyr

10/30/13 9:05 AM

#618627 RE: Zephyr #618626

Consumer Price Index
Released On 10/30/2013 8:30:00 AM For Sep, 2013
Prior Consensus Consensus Range Actual
CPI - M/M change 0.1 % 0.2 % 0.0 % to 0.3 % 0.2 %
CPI - Y/Y change 1.5 % 1.2 %
CPI less food & energy 0.1 % 0.2 % 0.1 % to 0.2 % 0.1 %
CPI less food & energy - Y/Y change 1.8 % 1.7 %
Highlights
Inflation firmed slightly at the headline level in September while the core rate remained low. Consumer price inflation in September rose 0.2 percent, following a 0.1 percent rise the prior month. The latest number matched expectations. The core CPI-excluding food and energy-held steady at a rate of 0.1 percent. Analysts' forecast a 0.2 percent gain.

By major components outside the core, energy jumped 0.8 percent, following a decline of 0.3 percent in August. Gasoline increased 0.8 percent (NSA-down 1.3 percent), following a dip of 0.1 percent the month before. Food prices were unchanged after edging up 0.1 percent in August.

For the core measure, the shelter (up 0.2 percent) and medical care indexes (up 0.3 percent) accounted for most of this increase. The indexes for new vehicles (up 0.2 percent) and for airline fares (up 0.5 percent) rose as well, while the apparel (down 0.5 percent) and recreation (down 0.1 percent) indexes declined.

Year-on-year, overall CPI inflation slowed to 1.2 percent from 1.5 percent in August (seasonally adjusted). The core rate came in at 1.7 percent versus 1.8 percent in August. On an unadjusted year-ago basis, the headline CPI in August was up 1.2 percent and the core was up 1.7 percent.

The year-ago slowing in the CPI will give the Fed room to delay taper with this afternoon's policy decision by the FOMC.