Tariffs Drive Up Commodity Prices as U.S. June Retail Sales Far Exceed Expectations

Odaily Planet Daily News: U.S. retail sales rebounded more strongly than expected in June, though part of the increase may reflect price hikes on certain goods affected by tariffs. Data released on Thursday showed that retail sales rose by 0.6% last month, following an unrevised 0.9% decline in May. This reading exceeded the market consensus forecast of a 0.1% increase. Part of last month's retail sales growth may have been driven by tariff-induced price increases rather than higher sales volume. Inflation data released this week showed that prices for tariff-sensitive goods—such as home goods, appliances, sporting goods, and toys—rose steadily in June. Excluding automobiles, gasoline, building materials, and food services, retail sales grew by 0.5% last month, compared to a revised 0.2% in May. Sam Bullard, Senior Economist at Wells Fargo, stated: "Overall, the household sector still appears to be holding up, but consumer spending seems to be slowing." (Jin10)