–Initial Unemploy Claims +13k to 462k for Oct 9, Start of Qtr
By Joseph Plocek
WASHINGTON (MNI) – The U.S. September producer price data surprised
on the upside as food costs continue to seesaw. Overall, though, this is
probably not a significant signal for consumer inflation.
September PPI printed +0.4% and core +0.1% (+0.1146% unrounded)
for over the year rates of +4.0% overall and +1.6% core.
Within core, light trucks printed +0.6%, cars +0.5%, and
pharmaceuticals +0.3%. These were offset by sanitary paper at -1.2% and
drops in prices for electrical equipment.
Food prices rose 1.2% overall as butter (at +17.2%, its biggest
gain since November 2009), meats, chicken, and vegetables jumped.
Energy posted +0.5% as drops in natural gas and gasoline offset
jumps in electric costs and Liquified Petroleum Gas. So overall the data
were benign.
Intermediate PPI posted +0.5% (with foods up) but crude posted
-0.5% as energy fell, giving mixed signals on future inflation.
Separately, Initial Unemployment Claims rose 13,000 to 462,000 for
the Oct. 9 week, the period that included the run-up to the Columbus Day
holiday and the quarter-end surge effect for filers.
Due to the holiday, five states estimated so the data might see
more revision than normal.
The claims level is close to the 457,000 4-week moving average and
the bump probably should be ignored as the number will drop next week.
Continuing claims fell 112,000 to 4.489 million in the Oct. 2 week.
Labor market data overall have been pretty steady since September and
are showing slow growth.
**Market News International Washington Bureau: (202) 371-2121**
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