US Retail Sales Promotion dataData released yesterday shows that retail and foodservice sales rose 8.1% year-over-year in May but fell 0.3% to $672.9 billion from April after weaker-than-expected growth. from March to April, which was simultaneously revised down by the US Census Bureau from a previously projected increase of 0.9. % total to 0.7%.

A closer look at what consumers spend their food dollars on shows a slight increase in grocery store sales of a seasonally adjusted 1.2% since April after being flat the previous month. In the food service and drink industries, seasonally adjusted sales also rose – but only by 0.7% compared to April – the lowest monthly increase in 2022.

While retail and foodservice sales continue to rise, all of the growth is likely due to inflation, which continues to rise.

The CPI rose 8.6% for all commodities and a staggering 10.1% for food over the past 12 months, according to Labor Department data released earlier this month. In terms of food, the prices of food consumed at home are significantly higher than the prices of food eaten outside the home: 11.9% compared to 7.4%. Bureau of Labor Statistics.

In an attempt to curb inflation, the Federal Reserve announced yesterday that it would raise interest rates aggressively by three-quarters of a percentage point – well above the expected half a percentage point. While this is the first increase of this size since 1994, it may not be the last as the Fed warns that more increases of the same size are on the horizon; however, it is unclear when and how often.

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