Wires

INSTANT VIEW 1-US producer prices up on surging gasoline, core rate flat

Share

NEW YORK, Oct 12 (Reuters) - U.S. producer prices rose morethan expected in September as the cost of energy surged, agovernment report showed on Friday, but underlying inflationpressures were muted.

STORY: TABLE COMMENTS:

TODD SCHOENBERGER, MANAGING PRINCIPAL AT THE BLACKBAY GROUPIN NEW YORK

"If you look at the month-over-month, it did cool down abit, which is interesting. People who expect recent Fed actionsto lift inflation are probably right, but I don't think we'llsee the impact of that for a few months, so enjoy this while youcan.

"This shouldn't impact trading as traders remain focused onearnings and outlooks. That will have a much bigger impact ontrades right now."

MARKET REACTION:

STOCKS: U.S. stock index futures held onto their earliergains .

FOREX: The dollar maintained its losses versus the euro andheld its gains versus the yen .

BONDS: U.S. Treasury debt prices held steady .

(Americas Economics and Markets Desk; +1-646 223-6300)

Keywords: USA ECONOMY/PPI