Tariffs drive up commodity prices, U.S. retail sales in June far exceed expectations

U.S. retail sales rebounded more than expected in June, but some of the growth may reflect higher prices for some goods affected by tariffs. Data released on Thursday showed that retail sales grew by 0.6% last month, after a 0.9% drop in retail sales in May that was unrevised, a reading higher than the market's general expectation of a 0.1% increase. Part of the increase in retail sales last month may have been driven by tariff-driven price increases, rather than sales volume. Inflation data released this week showed that prices for tariff-sensitive goods such as household goods, appliances, sporting goods and toys rose steadily in June. Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.5% last month, after a downward revision of 0.2% in May. "Overall, the household sector still seems to be holding up, but consumer spending appears to be slowing," said Sam Bullard, senior economist at Wells Fargo. (Golden Ten) [Odaily Planet Daily]