The U.S. retail figures show that consumers are still providing crucial support for the economy and spending on such discretionary items as furniture, restaurant meals and sporting goods
Consumers picked up their spending from May to June, underscoring their resilience despite painfully higher prices at the gas pump and in grocery aisles and allaying fears that the economy might be on the verge of a recession.
At the same time, last month’s spending gain is modest enough that it likely won’t encourage the Federal Reserve to raise interest rates even more aggressively. Stock prices rose after the report’s release. Kathy Bostjancic, chief U.S. economist at Oxford Economics, said that excluding inflation, retail sales still rose about 0.3 per cent in June, up from a contraction of 0.4 per cent in May. She expects the economy to grow at a slim 0.5 per cent annual rate in the April-June quarter, after shrinking in the first three months of the year.
The government’s consumer price index soared 9.1 per cent in June compared with a year ago, the biggest yearly increase since 1981, with nearly half of the increase due to higher energy costs. The year-over-year leap in consumer prices last month followed an 8.6 per cent annual jump in May. From May to June, prices rose 1.3 per cent, following a 1 per cent increase from April to May.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘The Handmaid’s Tale’: June Is Ready To Fight Gilead In The First Trailer For Season 5June is ready to fight on season 5 of 'The Handmaid's Tale'. On Thursday, the Elisabeth Moss-led Hulu series released the first trailer for season 5, which shows June's story pick up after she and other handmaids killed Commander Waterford (Joseph Fiennes) in the most recent finale. 'I want her to know that it was me,'…
Read more »
Toronto’s condo, apartment rents jump 20 per cent from June last year, report saysThe average price for a two-bedroom sits at more than $3,100.
Read more »
U.S. wholesale inflation surged 11.3% in June from a year agoThe Labor Department reported Thursday that the U.S. producer price index rose at the fastest pace since hitting a record 11.6% in March
Read more »
‘Inflation is Heating Up’: CPI Hit 9.1% in June, Highest Rate in 41 Years“Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”
Read more »
US Inflation Climbs to 9% in June: A Four-Decade HighUS inflation broke four-decade records in June, hitting a high of 9.1%, outpacing analysts' expectations.
Read more »
National Average Rents Rose Nearly 10% in June: ReportEven provinces known for being affordable are experiencing steady rent inflation. Rentalsdotca BullpenConsult inflation cdnpoli
Read more »