US Consumers Keep Spending Despite Inflation Squeeze

US consumers continue spending despite accelerating inflation driven by higher gas prices, which rose 20% in September and pushed wholesale costs up 6.3% annually, the biggest increase in nearly four years. Retail sales still grew 0.8% last month, though much of that reflected higher prices. The producer price index jump, powered by diesel costs averaging $6.32 a gallon, is raising shipping and food costs, with wholesale food prices climbing 1.2% monthly. Unemployment claims stayed below 200,000, supporting spending, but inflation-adjusted weekly paychecks declined year-over-year for the first time since May. The Federal Reserve, which raised its key rate to about 3.9% in September, likely will hike again this year, potentially raising borrowing costs for mortgages, car loans, and credit cards. September hiring slowed to 29,000 jobs, well below expectations.