Overview

• Retail sales rose 0.6% in June, reversing declines in April and May and exceeding economists’ forecasts of a 0.1% gain.
• Core retail sales excluding autos, gasoline, building materials and food services climbed 0.5% after a revised 0.2% drop in May.
• Ten of 13 major categories saw growth, led by a 1.2% jump in motor vehicle and parts dealer sales.
• Senior economists attribute much of the nominal increase to tariff-driven price hikes rather than higher unit volumes.
• Year-over-year consumer prices held at a 2.7% increase in June, keeping inflation sticky and complicating Federal Reserve rate considerations.