world-economy

US Retail Sales Growth Slows as Gasoline Prices Squeeze Consumer Budgets

U.S. retail sales growth decelerated in April as elevated gasoline prices forced consumers to reduce spending. The moderation reflects broader economic headwinds, with inflation accelerating to 3.8% annually—the fastest pace since 2023—driven primarily by surging fuel and grocery costs. Convenience stores reported particularly sharp declines, with high-fuel-cost regions experiencing the steepest drops in consumer activity. Beer sales stumbled notably as budget-conscious shoppers prioritized essential expenses over discretionary purchases. Core inflation, excluding volatile food and energy components, rose 0.4% month-over-month and 2.8% year-over-year, signaling persistent pricing pressures beyond fuel alone. The slowdown suggests consumers are reassessing spending habits amid mounting transportation and food costs, potentially signaling softer demand ahead for retailers dependent on discretionary purchases.