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Inflation & Prices

US Consumers Show Signs of Resilience Despite Raging Inflation

  • July retail sales minus gas stations, auto dealers rise 0.7%
  • Walmart, Target have sights on healthy fall shopping season
Pedestrians carry shopping bags on Powell Street in San Francisco.

Pedestrians carry shopping bags on Powell Street in San Francisco.

Photographer: David Paul Morris/Bloomberg

US consumers are standing firm in the face of hot inflation and rising interest rates -- even if they’re spending with a little less gusto and a lot more frustration.

Retail sales excluding a price-induced drop in gas station receipts and a drop in motor vehicle purchases rose a better-than-expected 0.7% in July, Commerce Department data showed Wednesday. Building-materials outlets, electronics and appliances stores and online merchants were among those with firm gains in receipts before adjusting for inflation.