Retail sales rise 0.6% in August largely due to a spike in gas prices
Associated PressNEW YORK — Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school. Retail sales rose 0.6% in August, compared with a revised 0.5% increase in July, according to a report issued by the Commerce Department on Thursday. The big rise in gas prices accounted for more than half of the inflation increase recorded in August, the U.S. Labor Department reported Wednesday. In fact, U.S. wholesale prices — which measures inflation before it hits consumers — accelerated in August, largely because of higher gas prices, according to a report issued by the Labor Department. “We expect a sharp slowdown in consumption growth, which will be the decisive factor tipping the economy into a mild recession over the coming quarters.” Inflation jumped last month largely because of the spike in gas prices but other costs rose more slowly, suggesting price pressures are easing at a gradual pace.