September Economic Snapshot: Wholesale Price Growth Slows as Retail Sales Maintain Momentum
Core Wholesale Prices Rise Less Than Expected in September; Retail Sales Show Moderate Gains
Published: November 25, 2025
Recent reports from the Bureau of Labor Statistics show wholesale prices softening. They point to modest gains in retail sales. These numbers shine a light on the U.S. economy as it faces high costs.
Producer Price Index Highlights Subdued Core Inflation
The Producer Price Index tracks prices that producers earn for goods and services. It rose by a seasonally adjusted 0.3% in September. Analysts had this rise in mind when they set the Dow Jones numbers. The core index, which does not include food and energy, climbed only 0.1%, under the expected 0.2%. In August, both headline and core measures fell by 0.1%, marking a small drop at wholesale. Over the past year, the headline index is up 2.9%, and the core index increased 2.6%. Goods prices drove the PPI up by 0.9%—the biggest increase since February 2024—while service prices stayed almost the same.
Energy and Food Prices Show Notable Movements
Final-demand energy prices jumped 3.5%. Gasoline prices were up 11.8%. Food prices increased by 1.1%. In services, transportation and warehousing prices rose 0.8%. Airline passenger fees climbed by 4%. These points show sectors where prices moved higher even as core inflation stayed soft.
Retail Sales Demonstrate Steady Consumer Spending
The U.S. Census Bureau records retail sales up by 0.2% in September. This is just below the 0.3% forecast. Without automobile sales, the growth reached 0.3%, which met expectations.
Key retail segments showed different results:
• Miscellaneous retailers climbed by 2.9%.
• Gas station sales grew by 2% as fuel prices increased.
• Sporting goods, hobby, and music stores dropped by 2.5%.
• Online sales slipped by 0.7%.
Sales at eating and drinking spots rose by 0.7% over the month and by 6.7% compared to last year. Annually, retail sales advanced by 4.3%, outpacing the 3% rise in the Consumer Price Index. This gap underscores steady consumer spending despite rising prices.
Impact of Government Shutdown on Data Releases
Some official economic reports have been delayed because of a government shutdown. The Bureau of Labor Statistics has canceled the October Consumer Price Index report. There is worry that the October Producer Price report might also be canceled. The next CPI update comes on December 18. Usually, the Producer Price report is timed with the CPI release.
Overall, the September figures show softening wholesale inflation as consumers spend with care. Market watchers will follow new data to see clearer signs on inflation and economic speed.
Full money-growing playbook here:
youtube.com/@the_money_grower
