Meanwhile, the monthly rise in auto sales was 3.6% in September, with unit sales reaching a 12-year high, and sales of building materials and garden equipment were up 2.1% on the month.
The Consumer Price Index grew 0.5% in September on a seasonally adjusted basis, according to U.S. Bureau of Labor Statistics.
Excluding food and energy prices, core producer prices still rose by 0.4 percent in September after inching up by 0.1 percent in August.
The increase in consumer prices was largely due to a jump in energy prices, which soared by 6.1 percent in September after jumping by 2.8 percent in August. The Labor Department added that Hurricane Irma has a "small impact" on the data collection.
Amazon Hiring 1500 in CT
Amazon is hiring 120,000 seasonal workers for the upcoming holidays across the US , the online retailer announced Thursday. Amazon officials say the vast majority of its associates - roughly 90 percent - work for the company full time.
Core inflation. CPI ex food and energy is forecast to tick higher to 1.8% from 1.7%.
Germany's inflation held steady, as initially estimated, in September, final data from Destatis showed Friday.
"Overall, with temporary factors weighing on core inflation and the activity data still suggesting that economic growth is strong, we still think that the Fed will press ahead and raise rates in December", said Michael Pearce, U.S. economist at Capital Economics. Officials were split on whether to hike rates for the third time this year, which would likely be in December.
The year-over-year reading is expected to rise to 2.3% from 1.9%.
Tamil Nadu government jacks up liquor prices to boost coffers
Shares of PVR and Inox Leisure gained 5-7 percent intraday on Friday as investors cheered cut in entertainment tax in Tamil Nadu. The fate of new movies of top stars like actor Vijay's " Mersal " slated for release for Deepavali next week hung in balance.
"I$3 t's worth noting that the CPI number is not the Fed's preferred measure of inflation but it is released a couple of weeks before the core PCE price index and there is followed closely for signs of price pressures building or declining", Craig Erlam, senior market analyst at OANDA, said in emailed commentary.
U.S. Treasury yields dipped and the dollar rose slightly on Thursday as investors awaited U.S. inflation data while Wall Street stock indexes fell as earnings season kicked off with a whimper.
The pan-European FTSEurofirst 300 index rose 0.01 percent and MSCI's gauge of stocks across the globe gained 0.12 percent.
Sterling last traded at $1.3273, up 0.39 percent on the day.
Paul Merson claims Harry Redknapp would have led Arsenal to the title
Meanwhile Wenger last won the league title in 2004 - during Arsenal's unbeaten season - and clinched the FA Cup last term. Merson played under Wenger during the Frenchman's first season in North London and under Redknapp at Portsmouth in 2003.
The dollar, which was yoyoing against the pound all morning, fell again to 1.3320 on the news to extend losses on the day to 0.44%, while spiking down on the euro 0.3% to 1.1866. The Japanese yen was up by 0.5% at 111.77 per dollar.