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.
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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."
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