BALTIMORE (TND) — Americans are still shopping, according to the latest retail sales numbers released Friday, even with the staggering 9.1% inflation rate that came out last week.
U.S. retail sales rose 1% in June, from a revised decline of 0.1 % in May, the Commerce Department reported Friday. While those figures aren't adjusted for inflation and largely reflect higher prices across the board, they do prove American consumers are still providing crucial support for the economy and spending.
Economist Steve Moore joined The National Desk Monday to make sense of it all.
"Well, it's a good news, bad news story. It is good news that consumers are still spending for sure. But, unfortunately, almost all of that increase in spending wasn't that people were buying more things," Moore told The National Desk's Jan Jeffcoat. "It's just that everything we're buying is more expensive."
Moore explained further, saying the increase in consumer spending is almost entirely because "everything from food to gasoline to travel costs to rental cars and so on is more expensive."
However, Friday's report showed consumers' ongoing appetite for non-essentials. Sales at furniture stores rose 1.4%, while electronics stores rose 0.4%. Online sales showed a resurgence, posting a 2.2% increase. Business at restaurants was up 1%. But department stores took a hit, posting a 2.6% decline.
For more of this interview, watch the video below.