Americans Shrug Off Inflation With Some Retail Therapy
Rising prices don’t appear to be deterring consumers from opening their wallets.
What inflation?
Photographer: Kathryn Gamble/Bloomberg
When the going gets tough in the U.S., the tough go shopping. The Commerce Department said Wednesday that retail sales surged 3.8% in January, the most in 10 months and well above the 2% median estimate of economists surveyed by Bloomberg. Sales among a control group that is used to calculate gross domestic product was even more impressive, soaring 4.8%, or almost three times what was forecast. The gains were broadly based, with eight of 13 retail categories showing an increase.
On the surface, this may seem like a head-scratcher. After all, just a few days ago the University of Michigan’s widely followed monthly index of consumer sentiment plunged to the lowest since 2011. The reason given for the tumble was that Americans’ views about their personal finances were deteriorating because of intensifying concerns about inflation.