US retail sales increased in March despite high inflation

According to the Department of Commerce report published this Monday, Retail sales in the United States rose for the month of March despite the fact that inflation increased again.

Although last month, the Consumer Price Index increased again by 0.4%, placing year-on-year inflation at 3.5%, consumer spending in March remained unchanged; according to recent data, Americans spent 0.7% more on everyday goods such as : food, gasoline and services.

In this regard, Jamie Cox, managing partner of Harris Financial Group, mentioned that American consumption remains high. “If you were looking for an economic slowdown, you are not getting it”said.

Since 2022, the Federal Reserve has implemented the strategy of the increase in interest rates to control inflation and bring it to 2%but also seek to curb consumer spending.

However, for Lydia Boussour, senior economist at EY, “retail sales in the United States were stronger than expected in March, confirming that persistently high prices are not deterring consumers from spendingas they continue to benefit from positive employment growth and rising real wages,” he noted.

An important point that the economist mentions is that despite high inflation and interest rates at their maximum range of 5.50%, the labor market remains solid, even generating salary increases in some sectors, which gives purchasing power to workers. Americans to continue spending.

However, specialists since last year have warned that Consumers will become more cautious as interest rates remain highstudent loan payments resume, savings decline and credit card debt, which hit a record high late last year, increases.

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