US producer prices post largest gain in 4-1/2 years; retail sales beat expectations
SPY•US producer prices rose 1.3% in September, their largest monthly gain since March 2022, while retail sales increased 0.8%, above expectations. Core retail sales rose just 0.1%, and weekly initial jobless claims remained below 200,000 for a fifth straight week.
1. Producer prices surge
The Producer Price Index for final demand rose 1.3% in September after an upwardly revised 0.5% increase in August. The year-over-year increase accelerated to 6.3%, its largest since December 2022. Energy prices rose 10.8%, while services prices increased 0.8%; economists estimated core PCE inflation rose 0.35% for the month.
2. Retail sales increase
Retail sales rose 0.8% in September, above economists’ 0.3% forecast, after an upwardly revised 1.3% gain in August. Receipts at service stations surged 6.4%, while retail sales excluding automobiles, gasoline, building materials and food services edged up 0.1%.
3. Claims stay below 200,000
Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 199,000 in the week ended October 10, remaining below 200,000 for a fifth consecutive week. The number of people receiving benefits after an initial week of aid fell 4,000 to 1.710 million.
