Inflation pressure rises as rates stay restrictive
We enter the October 20 week with inflation pressure firmer and financing costs still restrictive. U.S. consumer prices rose 0.6% in September and producer prices increased 1.3%, while the 10-year Treasury yield ended Monday at 5.15% and Freddie Mac's 30-year mortgage average held at 7.40%. Retail sales still advanced 0.8%, showing demand has not collapsed. In the Dominican Republic, annual inflation eased slightly to 5.12% and remittance inflows remained a constructive support for household activity.
01 · INFLATION
U.S. consumer inflation accelerates in September
The Consumer Price Index rose 0.6% in September and 3.7% over the year. Gasoline increased 9.1% in the month and accounted for more than half of the overall monthly rise, while core CPI increased 0.3% for the month and 2.6% from a year earlier.
Producer prices post their largest monthly gain since March 2022
The Producer Price Index for final demand increased 1.3% in September and 6.3% over the year. Goods prices rose 2.6%, services prices advanced 0.8%, and energy was the main driver of the goods increase.
Freddie Mac reported a 7.40% average for the 30-year fixed mortgage and 6.71% for the 15-year fixed mortgage as of October 15.
SOURCE VERIFIED ✓Freddie Mac ↗Last checked 10/20/2026, 4:29:14 AM
05 · DEMAND
Retail sales rise 0.8% in September
Advance U.S. retail and food-services sales reached $745.0 billion in September, up 0.8% from August and 6.3% from a year earlier. Sales for July through September were 5.5% above the same period in 2025.
Dominican inflation eases slightly but remains just above target
The Banco Central de la República Dominicana reported monthly inflation of 0.33% in September and annual inflation of 5.12%, slightly lower than in August. Core inflation declined to 4.61%.
The Dominican Republic received $9.49 billion in remittances from January through September, 6.5% more than a year earlier. September inflows were $1.06 billion, up 6.6% year over year.
The Census Bureau schedules its September New Residential Construction release for October 20 at 8:30 a.m. Eastern time, covering building permits, housing starts, and completions.