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Consumer Prices Accelerated in September

13 October 2017

The pan-European FTSEurofirst 300 index rose 0.01 percent and MSCI's gauge of stocks across the globe gained 0.12 percent.

USA consumer prices recorded their biggest increase in eight months in September as gasoline prices soared in the wake of hurricane-related refinery disruptions, but underlying inflation remained muted.

The US dollar index is down by almost 10% from US President Donald Trump's inauguration. The Russian ruble was up by 0.7% at 57.3218 per dollar, while Brent crude oil, the global benchmark, was up by 2.0% at $57.34 per barrel.

The Dow Jones Industrial Average fell 17.09 points, or 0.07 percent, to 22,855.8, the S&P 500 lost 2.1 points, or 0.08 percent, to 2,553.14 and the Nasdaq Composite dropped 2.41 points, or 0.04 percent, to 6,601.14.

The gasoline index increased 13.1% in September and accounted for about three-fourths of the seasonally adjusted all items increase.

Over the last 12 months, the all items index rose 2.2%.

"Overall, with temporary factors weighing on core inflation and the activity data still suggesting that economic growth is strong, we still think that the Fed will press ahead and raise rates in December", said Michael Pearce, U.S. economist at Capital Economics.

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The euro was down 0.15 percent to $1.1839 snapping four straight days of gains after rising to its highest since September 25 earlier in the session. The food index increased 1.2% over the previous year.

Bitcoin smashed through the $5,000 barrier for the first time and was last up 10 percent on the day.

Wall Street had a variety of drivers ranging from trade talks, which helped the materials sector, to oil prices, which boosted the energy sector, and retail data that helped consumer stocks, according to Tim Ghriskey, chief investment officer of Solaris Asset Management in NY.

USA crude fell 1.29 percent to $50.64 per barrel and Brent was last at $56.32, down 1.09 percent.

"I$3 t's worth noting that the CPI number is not the Fed's preferred measure of inflation but it is released a couple of weeks before the core PCE price index and there is followed closely for signs of price pressures building or declining", Craig Erlam, senior market analyst at OANDA, said in emailed commentary.

Spot gold added 0.6 percent to $1,301.41 an ounce.

Consumer Prices Accelerated in September