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Thursday, September 14, 2017

August US CPI 1.9% y/y vs 1.8% y/y expected

  • Prior was 1.7% y/y
  • Ex-food and energy 1.7% vs 1.6% exp
  • Prior ex-food and energy +1.7%
  • Avg weekly earnings +0.9% y/y vs +1.1% prior
  • Avg hourly earnings +0.6% vs +0.7% prior
Month-over-month data:
  • CPI 0.4% vs +0.3% exp
  • Prior 0.1%
  • Ex food and energy 0.2% vs +0.2% exp
  • Prior ex food and energy +0.1%
Do you like inflation or wages? The dollar likes the inflation numbers and is at the best levels of the day. USD/JPY touched off 111.00.        
There was a big jump in gasoline (+6%) so that should take a bit of the excitement out of the headline number. Core was strong as well, so it's not just Harvey.
The way the market has been this week, there is no questioning good US economic news, so it's going to be tough to stall the dollar.

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