"There isn't any meaningful risk of short-term core inflation"
- Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC
Consumer prices in the world's biggest economy advanced for the second consecutive month in September, as the cost of gasoline surged, the Labor Department reported Tuesday. The consumer price index jumped 0.6%, meeting analyst' expectations, while on the yearly basis a measure of underlying inflation rocketed 2%, posting the biggest gain since April. The core CPI, which excludes food and energy prices, rose 0.1% last month.
"There isn't any meaningful risk of short-term core inflation," said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who correctly forecast the gain in core prices. "When it comes to everyday goods and services, the lack of demand just isn't going to push prices higher."
"Core inflation was low and unthreatening (in September), but in truth neither matters to a Fed monetary policy committed to lowering unemployment," said Joseph Trevisani, a market strategist at Worldwide Markets in Woodcliff Lake, New Jersey.
The Standard & Poor's 500 rose 1.03 per cent to 1,454.92. The Dow Jones Industrial Average climbed 0.95 per cent to 13,551.78. The Nasdaq Composite advanced 1.21 per cent to 3,101.17.
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