During April, consumer retail sales increased 0.9% for everyday goods, including food, cars, and gasoline. There was a 1.4% gain during March,
This shows that customers are spending the same on dining out, vehicles, clothing, and electronics. When inflation is factored in, people are not getting as much as they used to when spending the same amount.
A US economist reported, “American consumers continued to spend more at retail stores in April, despite inflation as lower gasoline prices helped to boost spending on discretionary items. But it won’t last long as gasoline prices reached a record high in May.”
Walmart reported that its first-quarter profit took a hit due to soaring prices on necessities like food and fuel.
In April, the consumer price index rose 8.3% from the previous year, close to a 40-year high. Gas also broke a new record, with the national average climbing to $4.52 per gallon.