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Spending is at an almost all time high and we are calling it meager gains?
The writer of this headline doesn’t understand the meaning of the word ‘inflation’. Literally inflation was zero on a month over month basis (as your article points out), which is why the rise in retail sales was meager. Had inflation actually been high, then retail spending would have increased.
If you wanted to say ‘still-high prices curb spending’ that would make a little sense. Don’t skip Econ 202, friends. Given that it was an AP article, the only thing the IBJ did with this story is put an incorrect headline on it.
Kyle, the headline also came from AP. Inflation was unchanged from April to May, but that doesn’t mean it was zero. There’s a difference. Core prices still rose 0.2% month-to-month and were up 3.3% from a year ago. The Federal Reserve wants to see that year-over-year percentage fall below 2%. Otherwise it considers it high.