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For Club iNSIDER Traders: Our expectations for today’s CPI release.

Post Views: 462 We expect a moderate increase in the overall Consumer Price Index (CPI) for September — but we believe that the core CPI will be stronger than consensus. Declining energy costs are likely to weigh on the overall index, while stable hotel prices and a slower decrease in car prices will support the core CPI. However, recent months suggest that the Federal Reserve’s preferred measure of prices — the core PCE deflator (which will be released on October 31) — may rise more slowly than the September CPI. Seasonal factors through the end of the year will make it difficult to maintain the deflationary momentum, but weak core indicators — including high levels of trade inventories relative to…

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