Retail Sales Supported By Higher Gasoline Prices, Groceries
Tim Iacono
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If not for food and energy, categories that are explicitly excluded
from the Federal Reserve's preferred measure of inflation, retail
prices would have been about flat in October. Including these items,
retail sales rose 0.2 percent.
The Commerce Department reported on how much and where American consumers spent their money last month and an increasing amount went to gas stations (up 0.8 percent) and grocery stores (up 0.6 percent).
This follows an increase of 1.8 percent in gasoline station sales for September and, given the recent surge in pump prices, next month's increase is likely be much, much higher. Removing gas station sales in October results in just a 0.1 percent overall gain.
While sales at building material and garden supply dealers rebounded 0.6 percent in October after declining during five of the last eight months, sales of furniture and home furnishings continue to be impacted by the housing market slowdown, falling 0.9 percent, the fourth decline in the last five months.
Remember that these figures are not adjusted for inflation. For example, higher gasoline station sales do not necessarily reflect more gallons sold but, rather, a higher total dollar amount.
The impact of higher prices at the pump on holiday shopping is the subject of much debate at the moment - never before have gasoline prices been this high at this time of year. The bad news is that they are going to go even higher in the weeks ahead.
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