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US CPI decreased 0.2% in September on a seasonally adjusted basis. Over the last 12 months, the all items index was essentially unchanged before seasonal adjustment. The energy index fell 4.7% in September, with all major component indexes declining. The gasoline index continued to fall sharply and was again the main cause of the seasonally adjusted all items decrease. The indexes for fuel oil, electricity, and natural gas declined as well.
 
In contrast to the energy declines, the indexes for food and for all items less food and energy both accelerated in September. The food index rose 0.4%, its largest increase since May 2014. The index for all items less food and energy rose 0.2% in September. Analysts were predicting 0.1% increase. The indexes for shelter, medical care, household furnishings and operations, and personal care all increased; the indexes for apparel, used cars and trucks, new vehicles, and airline fares were among those that declined. 
 
After the data USD edged higher. Euro is currently being traded around 1.1410 area, Aussie is few points above 0.73 handle, while Sterling is at 1.5430 level.Later today, Philly Fed Manufacturing Index figures are scheduled for a release.
 

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