Sept. 15 (UPI) — Americans were still in a spending mood during the month of August, even with higher prices, government data showed on Thursday.
The Commerce Department issued its retail sales report for last month. It showed a 0.3% increase in spending over July, when spending actually decreased. Most analysts expected the data would show that spending was flat from July to August.
Sales in August were more than 9% higher than they were a year ago, the data showed.
The figures indicate that some Americans aren’t letting higher inflation rein in their spending, which totaled more than $683 billion last month.
The monthly figure is not adjusted for inflation, which increased slightly during the month of August.
Two particularly key factors in spending last month were declining gasoline sales and automobile purchases, the department said. If automobile sales are subtracted, retail spending in August swings to a 0.3% decline.
Analyst Ian Shepherdson called Thursday’s report “mixed,” but noted that “we see no cause for alarm.”
Increases in retail spending can lead to higher inflation if demand outpaces supply. Inflation in the United States slowed for the second straight month in August. Prices were 8.3% higher than August 2021 and 0.1% higher compared to July.
The Federal Reserve has increased key interest rates by 0.75% at its last three meetings, a move that traditionally has helped control inflation. The Fed is expected to raise rates again at its next policy meeting on Sept. 21.
