Inflation has been the story of the summer for any retailer selling discretionary goods, as higher prices on essentials have led to swift, stark shifts in shopping behavior. But retail sales in July — up nearly 10% since last year and a little better than flat since June, according to numbers from the Commerce Department — indicate that consumer spending has held up despite record inflation.
It helped that gas prices last month began edging down, leaving more cash in people’s wallets. Plus the numbers look better than they really are because the federal government doesn’t adjust them for inflation.
