Spending at retail and airline industries rose last month as inflation plateaued and consumer prices stabilized, according to a new analysis.
by US Mastercard SpendingPulse Report Total U.S. retail sales, excluding automobiles, rose 7.8 percent online and 3.5 percent in stores in May compared with the same period last year, according to U.S. retail sales figures released Wednesday.
The biggest increases in spending were on clothing and electronics, with sales up 7.7 percent and 10.7 percent, respectively, from a year earlier, the report said.
With Memorial Day marking the unofficial start of summer, the report found that airline spending was up 7.8 percent last month compared to last year.
Analysts noted that the restaurant sector grew 2.9 percent, but the grocery sector lagged behind.
But data released by the Labor Department on Wednesday morning showed grocery store prices have fallen for four consecutive months, suggesting that food costs may have peaked and are now falling.
Labor Department data also showed that consumer prices did not rise overall in May.
The consumer price index, a closely watched inflation gauge, was unchanged over the past month and rose 3.3% from a year earlier, Labor Department data showed, beating consensus expectations of a 0.1% increase in May and a 3.4% increase over the past year.
Deflation occurred in several areas, including computer software, flooring and window coverings, gasoline, and some food groups.
Inflation remains a top concern for voters, and Wednesday’s figures delivered a victory for the Biden administration, which has faced continued criticism for its management of the economy.
