June Retail Sales Feel Impact of Inflation

RAPAPORT... US retail sales saw soft growth in June as consumer prices climbed, especially for essential goods.Revenue rose 1% from the previous month, versus a 0.1% decrease in May, according to data the US Census Bureau released last week. June sales climbed 8% compared with a year earlier. Inflation is causing consumers to modify their spending behavior and prioritize essentials such as food, energy and back-to-school items, said National Retail Federation (NRF) CEO Matthew Shay. However, the changed purchasing habits were not sufficient to offset persistent price increases, he noted."June's numbers show consumers are powering through price pressures, but inflation is eating away at savings built up during the pandemic and is wiping out recent income gains," added NRF chief economist Jack Kleinhenz. "Inflation remains a challenge to consumers trying to make ends meet and will continue to be an issue even if it cools down in the months ahead."In June, sales advanced year on year in seven of the nine categories the US Census Bureau monitors. Of the segments that grew, clothing and accessories - which includes jewelry - saw the slowest improvement, up 0.2%. Revenues for the category slipped 0.4% from May. Online sales across all products increased 10% year on year and went up 2.2% compared to the previous month.Image: A mall in Washington state, US. (Shutterstock)