Published: Fri, October 13, 2017
Finance | By Loren Pratt

US Consumer Prices Rise Slightly Less Than Expected In September

US Consumer Prices Rise Slightly Less Than Expected In September

The US dollar index was down by 0.3% at 92.77 at 8:53 a.m. ET after being up in the green ahead of the CPI report.

Consumer prices in the U.S. increased by slightly less than expected in the month of September, according to a report released by the Labor Department on Friday.

The price index of a small basket in September 2017 compared to August 2017 was 100.7% and the overall increase since the beginning of the year (September 2017 compared to December 2016) has been 102.1%.

Meanwhile, the monthly rise in vehicle sales was 3.6% in September, with unit sales reaching a 12-year high, and sales of building materials and garden equipment were up 2.1% on the month.

The Dow Jones Industrial Average fell 31.88 points, or 0.14 percent, to end at 22,841.01, the S&P 500 lost 4.31 points, or 0.17 percent, to 2,550.93 and the Nasdaq Composite dropped 12.04 points, or 0.18 percent, to 6,591.51. Officials were split on whether to hike rates for the third time this year, which would likely be in December. Core prices had been expected to rise by another 0.2%.

United States retail sales rose in September, overcoming the negative impact in the previous month from Hurricanes Harvey and Irma.

The 30-year bond was last up 15/32 in price to yield 2.8562 percent, from 2.876 percent late on Wednesday.

U.S. Treasury yields dipped and the dollar pared gains on Thursday as investors waited on U.S. inflation data while Wall Street stock indexes were largely unchanged as earnings season kicked off with a whimper.

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.

Spot gold added 0.1 percent to $1,293.37 an ounce. The British Chambers of Commerce said in its Quarterly Economic Survey, an influential business lobby group, said Friday The Bank of England hiking interest rates next month would be an "extraordinary" step and should be avoided given the current economic climate in the UK.

The dollar turned negative as sterling jumped to an eight-day high against the dollar with analysts citing a report in Germany's Handelsblatt newspaper that the European Union could offer Britain a two-year transitional Brexit deal. The Indian rupee was up by 0.4% at 64.729 per dollar.

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