by Calculated Risk on 10/12/2007 09:56:00 AM

From the WSJ: Retail Sales Rose in September; PPI Rebounds on Energy Prices

U.S. retail sales climbed vigorously in September, rising at double the rate expected despite weak demand for housing-related goods as consumers spent strongly on cars.

U.S. wholesale prices rebounded last month, fueled by gains in the cost of food and energy, while pipeline pressures intensified modestly, a government report showed. Still, core inflation was lower than expected, so the report alone won't dissuade the Federal Reserve from lowering rates again when it meets later this month.

Retail sales increased by 0.6%, the Commerce Department said Friday. Sales went up an unrevised 0.3% in August.

This is definitely unexpected.