Figures released today show that US consumers spent more than expected in August, while import prices rose steadily. The reports hinted that the US economy might not be slowing quickly enough to curb inflation pressures.
The US Commerce Department said retail sales rose 0.2%, as lower petrol prices helped spur spending in other areas like cars and school-related purchases. Analysts had expected a slight fall in sales after a 1.4% jump in July.
The data come less than a week before the Federal Reserve's next policy-setting meeting. Analysts widely agree the US central bank will hold interest rates steady, but the latest figures kept alive questions about whether the Fed might eventually have to resume raising rates.
A breakdown of the retail sales figures showed that car-related sales defied expectations for a decline, rising 0.4% after an upwardly revised 4.3% surge in July. Declining petrol prices in August led to a 1% drop in sales at filling stations, helping to keep extra funds in consumers' pockets. Excluding petrol, retail sales advanced by 0.4%.
In a separate report, the Labor Department said US import prices rose by a more than expected 0.8% in August and the cost of non-petroleum imports climbed 0.5%. It was the fourth increase of at least 0.8% in the last five months. Oil prices were behind much of the gain, although the numbers have also been volatile. Petroleum import prices rose 2.3% in August and are up 24.3% compared with a year ago. But import prices could moderate in September, as petrol prices have fallen in line with oil prices.
