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US retail sales up 1% in June, above analysts’ expectations

US retail sales rose more than expected in June as consumers shopped for motor vehicles and a range of other goods, even as they paid more for gasoline.

Retail sales rose 1.0% last month, the Commerce Department said on Friday.

The May data was revised to show that sales were down 0.1% instead of the previously reported 0.3% drop.

Economists polled by Reuters were projecting retail sales would rise 0.8%, with estimates ranging from a 0.2% drop to a 2.2% rise.

Retail sales are comprised primarily of goods and are not adjusted for inflation.

US consumer prices rose 9.1% in June on a yearly basis, the biggest increase since November 1981, putting the Federal Reserve on track to deliver another 0.75 percentage point interest rate hike later this month. .

Since March, the US central bank has raised interest rates by 1.50 points.

Gasoline prices rose in June, averaging over $5 a gallon, according to data from the American Automobile Association (AAA).

But they have since declined from last month’s record highs and averaged $4.577 a gallon on Friday.

Retail sales also got a boost from motor vehicle purchases after being pressured by a shortage.

Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.8% in June.

The May data was revised to show that those sales were down 0.3%, not unchanged as previously reported.

Core retail sales correspond more closely to the consumption component of Gross Domestic Product.

Source: CNN Brasil

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