American retail sales and CPI rise in September

While American retail sales rose higher than analyst forecasts in September, the nation’s consumer price index (CPI) rose less than expected in data released today.

According to the Bureau of Labor Statistics, following 30 basis point gains in the prior two months, CPI rose 10 basis points in September, down from a projected 20 basis point gain. As a result over the past 12 months US CPI has increased 110 basis points.

The marginal rise was driven by the higher costs for gasoline and food. However core prices, which exclude food and fuel costs, rose 80 basis points over the last year, which according to Bloomberg represents the smallest year-on-year gain since 1961. (article continues below)

However, retail sales in America jumped 60 basis points in September, according to the Commerce Department, which is higher than the 40 basis point rise than had been forecast by analysts.

Sales at motor vehicles and parts dealers rose 160 basis points in September, while electronics and appliances stores saw a 150 basis point gain. With the exception of clothing and department stores, every other major retail category showed gains for the month.