U.S. CPI popped 0.3% in September, while the core rate rose 0.1%
U.S. CPI popped 0.3% in September, while the core rate rose 0.1%. The former was in line with expectations but it the firmest print since the 0.3% rise in May 2015, while latter was a little light of expectations. There were no revisions to prior months, where the headline increased 0.2% with the core up 0.3%. On an annual basis, the headline posted a 1.5% y/y increase versus 1.1% y/y for August. The core rate slipped to 2.2% y/y form 2.3% y/y. A 2.9% surge in the energy component paced the overall strength in September after a flat August print. Transportation was up 1.0%. Housing costs increased a firm 0.4%. Services costs rose 0.2% last month, while food/beverage prices were unchanged. Medical care edged up 0.2%. Tobacco was up 0.4%, as were commodities. Apparel prices dipped 0.7%.