US DATA: Aug CPI +0.4%, core +0.2% (+0.2444% unrounded) for +3.8% YOY
overall and +2.0% YOY core, worse than expected. In core, apparel +1.1%
continued a string of gains, airfares +1.1%, tobacco +0.5%, used cars
+0.9%, & med services +0.3% contributed to broad gains. OER +0.2%. Food
+0.5% as cereals, dairy, meats, fruit & veg gained. Energy +1.2% as gas
+1.9% (all in SA as NSA -0.5%) in its 12th gain in 14 mos. Bottom line:
another poor report with a surprise headline.
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Unemployment claims +11k to 428k for Sep 10 wk vs 412k in mid-Aug and
422k in mid-July–so sticky with no big movement. But the wk incl Labor
Day holiday; NSA claims -22.5k and could rebound. Saw no signs of
hurricane effects. Continuing claims -12k to 3.741m for Sep 3 pd.