US Retail Sales Rise as Import Prices Surge in April
U.S. retail sales increased 0.5 percent in April as tax refunds and stock market gains helped households manage rising costs. However, import prices jumped 1.9 percent during the same period, marking the largest monthly increase since 2022 and reinforcing expectations that interest rates will remain elevated.
The United States Census Bureau reported retail sales rose 0.5% in April, marking a third consecutive monthly increase for the economy. The gain met Reuters poll forecasts but followed a downwardly revised 1.6% jump in the previous month. Rising inflation and energy costs are eroding household purchasing power, potentially slowing future consumer spending and GDP growth.
Import prices surged 1.9% last month, the largest increase since March 2022, per the Bureau of Labor Statistics. This jump followed a 0.9% rise in March. Annual import inflation reached 4.2% in April.
