As far as how this compares, the gain in September was 1.1% and the gain in August was 1.2%. While this is higher than expected, at least the trajectory is lower and that may keep the inflation hawks a bit subdued. What is interesting is that prices on goods from China actually were down by about 0.3%, but goods from Europe were up by 0.6%.
While oil prices are still low, the ex-energy import prices were up by 0.3%, and that was the biggest gain in at least six months. Food prices were up by 0.2%, auto import prices were up 0.3% and consumer goods on an ex-autos basis were up by 0.2%.
China has a virtual currency peg and prices were down, while Europe is in the midst of disaster and prices were up. Sometimes these numbers just seem counterintuitive.
JON C. OGG