Retail sales fell 0.3% last month Department of Commerce This Wednesday. The April data was revised upwards to show a 0.7% increase in sales from 0.9% as previously announced.
By consulting economists Reuters Retail sales are forecast to increase by 0.2%, with estimates ranging from a 1.1% decline to a 0.5% increase.
The national average price of gasoline rose to an all-time high of $ 4,439 a gallon in May, according to data from the U.S. Energy Information Administration.
The decline in retail sales also reflected a gradual cycle of costs from goods to services. Retail is mostly commodities and is not conducive to inflation. Bars and restaurants are the only type of service in the report.
Annual consumer prices in May had the largest increase in nearly 40 and a half years. With inflation eroding wage gains, consumer savings, accumulated during the Govt-19 epidemic, are being borrowed to continue spending.
Retail sales are expected to weaken as the Federal Reserve tightens monetary policy to cool demand and bring inflation to its 2% target.
The US Federal Reserve is expected to raise interest rates on Wednesday for the third time this year, with a 0.75 percentage point increase possible.
With the exception of automobiles, petrol, construction materials and food services, retail sales remained unchanged in May.
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