as of 3:04pm
From the usually data (not spin) driven Bloomberg homepage:
Inflation Stays in Check
I don’t get that.
Here’s how I read this morning’s inflation data (as Crude Oil, COINCIDENTALLY, rallies to $89):
The September CPI rose 0.3% headline, and 0.2% core vs the consensus of 0.2% for both. That’s a huge upside surprise on the headline number.
Year over year, headline CPI rose 2.8%. Thats the highest level since August 2006. The core
rose 2.1% for the 2nd straight month Y/Y.
Owners equivalent rent (OER) rose 0.3% for the
first time since March. With foreclosures increasing and lending standards tightening,
more people will be renting, potentially pushing this number up further. (OER = 23.8% of CPI).
Food prices rose 0.5% and are now up 4.5% y/o/y.
Miller Tabak’s Peter Bookvaar points out that in response to the number, "the
implied inflation rate in the 10 year TIPS has ticked up to the highest since
July. Inflation pressures won’t go away."
I have nothing further to add . . .