Americans spent far more at gas stations in August as fuel prices skyrocketed, pushing retail sales far above expectations.
Sales at gas stations climbed 5.3 percent from July after a small rise of 0.1 percent in the prior month, Commerce Department data showed Thursday.
A separate report released on Wednesday showed that gasoline prices rose 10.6 percent for the month. So the increase in sales looks like it is entirely due to higher prices.
The value of total retail purchases increased 0.6 percent in August, much higher than the 0.2 percent expected by analysts.
But the upside surprise was not all due to gas sales. Excluding gasoline, sales climbed 0.2 percent, beating expectations for a 0.1 percent increase.
The retail sales figures are not adjusted for inflation. Last month, the consumer price index rose 0.6 percent. Excluding food and energy prices, core consumer prices were up 0.3 percent. This suggests that while Americans spent more to make purchases, this was mainly due to higher prices rather than households acquiring more goods and services.
Sales were up in most categories of retailers tracked by the Commerce Department. Sales at car dealers rose 0.4 percent. At electronics and appliance stores, sales rose 0.7 percent. Grocery store sales rose 0.4 percent. Health and beauty store sales climbed 0.5 percent.
Clothing store sales jumped 0.9 percent, suggesting a strong back-to-school shopping season.
Department store sales and general merchandise sales were up by 0.3 percent.
Online sales were flat following the July surge of 7.2 percent, which reflected Amazon Prime Day sales.
Restaurant and bar sales rose 0.3 percent, likely largely a consequence of food-at-home prices rising by the same 0.3 percent, according to the consumer price index.
Sales are building and garden supply stores—think Home Depot and Lowes—rose 0.1 percent. Sales were down at furniture stores.
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