Institutions: US September inflation expected to continue accelerating, gasoline pushes CPI higher, diesel exacerbates producer-side inflation

Odaily reports: Fifth Third Bank Chief US Economist Bill Adams expects US September CPI to show another elevated reading, driven by a rebound in gasoline prices. Rising fuel costs could also push up airfare prices, which are a component of core CPI. Other core CPI components are expected to see relatively modest gains. New and used vehicle prices may edge lower as dealers clear inventory through discounts and promotions. Prices for most other durable goods are expected to change little. Housing inflation may slow again, reflecting the lagged pass-through of moderate home price and rent increases from last year and early this year.

PPI gains may outpace CPI, as September diesel prices rose more than gasoline, and diesel prices have a greater impact on producer costs. Transportation and warehousing costs could also rise significantly, pushing core PPI higher. Due to residual seasonality, healthcare services prices may see relatively modest increases. (Jinshi)