Retail Sales Rose 0.3 Percent in May Despite Pressure From Higher Inflation and Interest Rates
NEW YORK—Americans increased their spending at retailers last month despite pressure from still-high inflation and rising borrowing costs.
Thursday’s report from the Commerce Department showed that retail sales rose 0.3 percent from April to May, boosted by stronger sales of auto and parts dealers.
Economists had been expecting a decline in sales for the month. Last month’s increase pointed to a still-resilient economy, though retail sales have been bumpy this year after surging nearly 3 percent in January. Sales tumbled in February and March before recovering in April.
The latest retail sales data follow a government report this week that consumer inflation eased last month. Prices rose just 0.1 percent from April to May and are up just 4 percent over the previous 12 months—the lowest such figure in over two years. Americans are still facing surging prices for many items, including rent and used cars, though some of them are expected to slow or even decline in the coming months….