Energy Costs Remain High: US May Retail Sales Beat Expectations

Data released today by the US government showed that retail sales in May surpassed market expectations, primarily due to high gasoline prices driven by Middle East conflicts, which boosted sales at gas stations. According to AFP, the US Department of Commerce announced that May retail sales rose 0.9% from April to reach $763.7 billion. This growth rate exceeded the 0.5% increase forecast by economists surveyed by Dow Jones Newswires and The Wall Street Journal. The report noted that total sales in May were up 6.9% compared to the same month last year. These figures are not adjusted for inflation. Inflation has surged since late February, when the US and Israel launched airstrikes on Iran, prompting Tehran's retaliation and effectively blocking the entire Strait of Hormuz.