US producer prices post largest gain in 4-1/2 years; retail sales beat expectations

US producer prices rose 1.3% in September, the largest monthly gain since March 2022, driven by surging energy costs and signaling inflation broadening beyond fuel. The increase exceeded economist forecasts of 0.5%. The Producer Price Index jumped 6.3% year-over-year, the biggest rise since December 2022. Energy prices surged 10.8%, with gasoline up 20.3%, while services costs rose 0.8%. Core goods, excluding food and energy, increased 0.3%. Separate data showed retail sales rose 0.8% in September, beating expectations, boosted by higher gasoline receipts. Economists anticipate firmer inflation readings ahead, with some expecting a Federal Reserve rate hike this month, though markets largely price in a December move.