U.S. Economy: Retail Sales Rise Less Than Forecast

U.S. retail sales rose less than forecast in December, limited by a surge in gasoline costs that boosted wholesale prices and reduced economic growth.

Sales rose 0.2 percent, excluding autos, which was half as much as expected, a Commerce Department report showed today. A rebound in gasoline costs led to a 0.9 percent rise in producer prices, the Labor Department reported separately. The core rate, which excludes fuel and food, rose less than forecast.

“The reports underscore the importance to the consumer of this huge rise in energy prices,” said Christopher Low, chief economist at FTN Financial in New York. Energy prices “have taken a big bite out of people’s spending power.”
Bloomberg