CIBC Research comments on today's US retail sales and CPI data prints fro the month of September.
"Add September's retail sales and CPI to the growing list of US data releases that have been affected by hurricanes. While not as strong as the unit auto sales had indicated, autos still powered a headline retail sales gain of 1.6% on the month...Stripping that and other volatile elements out core sales still added a solid 0.4% on the month.
Separately, headline CPI advanced a strong 0.5% on the back of higher energy prices again related to the hurricanes. The core figure was, however, softer than expected registering a gain of only 0.1% on the month. That leaves the annual rate tracking only 1.7%, remaining at the low end of the range seen this year.
Overall, the soft core CPI numbers will weigh on US yields, and provide a headwind for the US dollar today," CIBC notes.