US in­fla­tion slows in Septem­ber, job­less claims rise

Daily Sabah (Turkey) - - Money -

U.S. con­sumer prices rose less than ex­pected in Septem­ber, held back by a slower in­crease in the cost of rent and fall­ing en­ergy prices, as un­der­ly­ing in­fla­tion pres­sures ap­peared to cool slightly.

The mod­est price in­creases come de­spite a U.S. la­bor mar­ket that looks ro­bust by most mea­sures. With the read­ings only slightly be­low what an­a­lysts ex­pected, the in­fla­tion re­port is not likely to im­pact ex­pec­ta­tions the Fed­eral Re­serve will raise in­ter­est rates at its De­cem­ber pol­icy meet­ing. U.S. Trea­sury yields ex­tended their fall while U.S. stock in­dex fu­tures pared losses, as the data dented ex­pec­ta­tions of a more ag­gres­sive pace of Fed rate hikes. The dol­lar held at lower lev­els against a bas­ket of cur­ren­cies.

The Con­sumer Price In­dex in­creased 0.1 per­cent last month af­ter ris­ing 0.2 per­cent in Au­gust, the La­bor De­part­ment said. In the 12 months through Septem­ber, the CPI in­creased 2.3 per­cent, slow­ing from Au­gust’s 2.7 per­cent ad­vance.

Ex­clud­ing the volatile food and en­ergy com­po­nents, the CPI edged up 0.1 per­cent for the sec­ond straight month. The so-called core in­dex had in­creased 0.2 per­cent in May, June and July.

In the 12 months through Septem­ber, the core CPI in­creased 2.2 per­cent.

Own­ers’ equiv­a­lent rent of pri­mary res­i­dence, which is what a home­owner would pay to rent or re­ceive from rent­ing a home, rose 0.2 per­cent in Septem­ber af­ter ris­ing 0.3 per­cent in Au­gust. Rental prices for pri­mary res­i­dences rose 0.2 per­cent, down from a 0.4 per­cent in­crease in Au­gust.

Sep­a­rately, the La­bor De­part­ment said ini­tial claims for state unem­ploy­ment ben­e­fits in­creased 7,000 to a sea­son­ally ad­justed 214,000 for the week ended Oct. 6. While an­a­lysts had ex­pected a slight de­cline, the read­ing still re­mained near a 49-year low.

The four-week mov­ing aver­age of ini­tial claims, con­sid­ered a bet­ter mea­sure of la­bor mar­ket trends as it irons out weekto-week vo­latil­ity, rose 2,500 to 209,500 last week.

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