US CPI rose a tenth more than expected to 0.4% month-on-month/5.4% year-on-year while core came in-line with the consensus prediction at 0.2%/4.0%. The larger headline figure was caused by energy prices rising 1.3% MoM and food gaining 0.9% MoM. Gasoline prices have accelerated through the first half of October, suggesting more upside from this component next month and it will feed through into higher transportations costs too. We also have to be braced for sharply higher wholesale natural gas prices translating into higher utility bills. Within core apparel prices fell 1.1% and used cars and trucks fell 0.7% while ... (full story)