Details from the September 2016 US CPI data report 18 October 2016

  • Prior 1.1%

  • 0.3% vs 0.3% exp m/m. Prior 0.2%

  • Core 2.2% vs 2.3% exp y/y

  • 0.1% vs 0.2% exp m/m. Prior 0.3%

  • Real average weekly earnings 0.2% vs -0.4% prior m/m

  • 0.8% vs 0.4% prior y/y

Pretty much bang on the screws. The earnings numbers are due some credit too. The initial reaction was to sell the dollar, which again shows that perhaps there was some expectation already baked in for a good number. That it wasn't better than expected, and the core was a tick softer had longs probably taking profit.

In the numbers, rent and gasoline price rises led the way. The rise in fuel prices matches what we saw in the UK earlier. All hail oil related inflation!

US CPI details

This may not be a game changer for the dovish among the FOMC, who want to wait longer for inflation to get nearer target but their arguments are diminishing in value.

US CPI & core y/y