WASHINGTON — Americans spent slightly more at stores last month, giving the economy a small boost, just as the Federal Reserve is considering how much to cut its key interest rate.
Retail sales rose 0.1% from July to August, following the biggest jump in 18 months the previous month, the Commerce Department reported Tuesday. Online retailers, sporting goods stores and home and garden stores reported higher sales.
The data suggests that consumers are still able to spend more, despite the cumulative impact of three years of excessive inflation and higher interest rates. Average salaries, particularly for lower-income Americans, have also risen sharply since the pandemic, helping many consumers keep spending even as many necessities have become more expensive.
The impact of inflation and consumer health has been an ongoing issue in the presidential campaign, with former President Donald Trump blaming the Biden-Harris administration for the post-pandemic price spike. Vice President Kamala Harris, for her part, has claimed that Trump’s claim to impose 10% to 20% tariffs on all imports amounts to a “Trump tax” that will further increase prices.