Investing.com - U.S. retail sales barely rose in September as cheaper gasoline weighed on service station receipts, but gains in purchases of automobiles and other goods pointed to solid domestic demand that could shield the economy from slowing global growth.
Other data on Wednesday suggested disinflation was reemerging, with producer prices in September posting their biggest decline in eight months. The combination of soft retail sales and weak inflation cast more doubt on whether the Federal Reserve will raise interest rates this year.
The Commerce Department said retail sales edged up 0.1% last month after being flat in August.
In a separate report, the Labor Department said the producer price index fell 0.5% in September, the largest drop since January.
Weakness in inflation is one of the obstacles confronting policymakers who are contemplating raising rates for the first time in nearly a decade. The U.S. central bank has kept its short-term interest rate near zero since late 2008.