june us retail sales: US retail sales zoom higher, up 1% in June: government – Blue Barrows

US retail sales shot up one percent in June amid the ongoing surge in prices, rebounding after a pause in May, the government reported Friday.

The increases were widespread, and sales were still up 0.7 percent even when gasoline is removed from the calculation, according to the Commerce Department data.

The report showed an American consumer still eating out, buying furniture and cars even amid the fastest inflation in more than four decades.

That poses a challenge for the Federal Reserve which has been hoping to see signs that its aggressive interest rate hikes were starting to take the economy off the boil, and tamp down high prices.

Total sales dipped 0.1 percent in May, but recovered with a vengeance last month.

Record gas prices at the pump in June were a major factor, boosting sales 3.6 percent, following an eye-watering 49.1 percent surge from June 2021, the report said.

Auto sales rose 0.9 percent in June, after a 3.4 percent drop in May, while furniture stores and restaurants saw sales rise one percent or more, while online sales gained 2.2 percent.

Clothing and building and gardening stores were among the few categories posting declines, the data showed.