Retail sales, airline spending shot up in May: Analysis

Spending in the retail and airline sectors saw a boost last month as inflation hit a plateau and consumer prices evened out, according to a new analysis.

According to the U.S. Mastercard SpendingPulse report for May, published Wednesday, U.S. total retail sales — not including auto — grew online by 7.8 percent and in store by 3.5 percent compared to the same time last year.

Apparel and electronics saw the biggest increase in spending, with sales up 7.7 percent and 10.7 percent year over year, respectively, the report stated.

With Memorial Day marking the unofficial start of summer, airline spending was up 7.8 percent last month compared to last year, per the report.

The restaurant sector experienced a growth of 2.9 percent, analysts noted, while the grocery sector fell behind.

Prices at the grocery store, however, fell for the fourth month in a row, suggesting grocery costs hit their peak and are now dropping, per data released by the Labor Department on Wednesday morning.

The Labor Department data also showed consumer prices did not rise on the whole in May.

The consumer price index, a closely watched gauge of inflation, was unchanged over the past month and is up 3.3 percent annually, per the Department of Labor data. This beat consensus estimates that it would rise 0.1 percent in May and 3.4 percent over the past year.

Several sectors experienced deflation, including computer software, floor and window coverings, gasoline and several food groups.

Inflation remains an area of top concern for voters, with Wednesday’s numbers handing the Biden administration a win after facing ongoing criticism over its handling of the economy.