There is no auto-sort, but you can move large items and books, etc, into a chest to clean up your inventory. Rope is useless, except for 4 pieces you need for a certain location which you can find just before getting there, and you can get rid of crappy items you can not use or sell.
Keep a chest to stash items you may use later, like excess lockpicks, scorpion, egg and trap material if you want the option of trying the survivor's Deadly Gift skill at some point, excess food or potions, etc.
It should usually be obvious which books or letters are quest related and should be kept on your character, and which are random or just for atmosphere, and can be stashed or sold.
