U.S. Retail Sales Rise 0.9% in May as Iran-Driven Gas Prices Lift Spending
Updated
Updated · WJLA · Jun 17
U.S. Retail Sales Rise 0.9% in May as Iran-Driven Gas Prices Lift Spending
3 articles · Updated · WJLA · Jun 17
Summary
U.S. retail sales rose 0.9% in May, topping forecasts and accelerating from April’s 0.4% gain even as higher fuel costs squeezed household budgets.
Gas station sales jumped 3.4% after a 2.4% rise in April, while sales excluding gas still increased 0.7%, helped by warmer weather and larger tax refunds.
Inflation hit 4.2% in May and real hourly wages have fallen for three straight months since the Iran war, suggesting part of the sales gain reflected higher prices rather than stronger volumes.
Higher-income households and shifting spending priorities have kept consumption afloat, but economists say lower- and middle-income consumers may struggle once the tax-refund boost fades.
Gasoline averaged $4.02 a gallon on Wednesday—still nearly $1 above a year ago—even after a tentative U.S.-Tehran deal eased oil prices, leaving the Fed cautious as markets reassess chances of a 2026 rate cut.