Tracking The World Economy... - 18/10/2010

US Core Inflation Moderated Yoy In September, Increasing The Odds Of The Fed To Ease Its Policy Further
US headline inflation eased to 0.1% mom in September, after holding stable at 0.3% in July-August. The moderation
was due to a sharper drop in the prices of apparel and the costs of recreation, while the costs of housing and education
slipped into a contraction during the month. A slower increase in the costs of transport, on the back of a slowdown in
gasoline prices and a drop in the costs of vehicles, also helped. These were, however, offset partially by to a pick-up
in food & beverage prices and the costs of medical. Excluding energy prices, inflation remained unchanged in September,
after holding stable at 0.1% mom in May-August. Excluding food and energy prices, the core inflation rate remained
unchanged for two consecutive months in August-September, after easing to +0.1% mom in July.


Tracking The World Economy... - 18/10/2010