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U.S. Retail Sales Rebound 0.6% in June on Broad Gains and Tariff-Driven Prices

Widespread retail increases reflect higher prices on tariff-sensitive goods, complicating the Federal Reserve’s decision on interest rate cuts.

Tomatoes are displayed as customers shop at a grocery store in Glenview, Ill., Tuesday, July 15, 2025. (AP Photo/Nam Y. Huh)
People shop at a Manhattan retail store on July 15, 2025 in New York City.
WASHINGTON, DC - JULY 13:  U.S. President Donald Trump walks into the White House on July 13, 2025 in Washington, DC. President Trump and first lady Melania Trump spend the afternoon attending the final match of the FIFA Club World Cup at MetLife Stadium in East Rutherford, New Jersey. (Photo by Tasos Katopodis/Getty Images)
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Overview

  • June retail sales rose 0.6% after two months of declines, surpassing economists’ forecasts of a 0.1% gain.
  • Core retail sales excluding automobiles, gasoline, building materials and food services increased 0.5%, reversing a downwardly revised 0.2% drop in May.
  • Spending expanded across most categories, led by a 0.9% gain at clothing stores, a 0.6% increase at restaurants and a 0.4% rise in online retail.
  • Consumer prices climbed 2.7% year-on-year and 0.3% month-to-month in June, with the largest gains among tariff-sensitive goods.
  • The surge in nominal sales partly reflects tariff-induced price increases, muddying the outlook for Federal Reserve rate cuts.