Retail sales last month slipped a bit, the Census Bureau reports. But much of the decline came from the auto and related industries. Given the soft economic backdrop of late, it’s no wonder that consumers are reluctant to buy cars, which for most folks are the largest purchase after a house. Otherwise, this was a surprisingly good report, given the dominance of plus signs elsewhere in the column of monthly changes among the broad categories of retail sales. Excluding motor vehicles and parts, retail sales overall rose 0.5% last month.
Joe Sixpack seems to be holding up quite nicely in the face of recessionary fear, or so this data series is telling us. So, what’s the problem? For some thoughts on that, we turn to import prices, which surged by 1.8% last month, the Bureau of Labor Statistics reports. Sure, that’s lower than the nosebleed 2.9% for March. But no one should be celebrating. The United States is importing inflation, and the problem may get worse.