dinsdag 16 september 2014

Retail Sales Vs. Consumer Price Index

The retail sales report is a monthly economic indicator compiled and released by the Census Bureau and the Department of Commerce. It gives a monthly aggregated measure of sales of retail goods. So basically it gives the sales figure of what people bought the previous month.

If retail sales go up, it means people either bought more things, or prices went up for their goods or a combination of both. But I think retail sales are a good indicator of inflation.

The chart below clearly illustrates that retail sales are a leading indicator for the consumer price index, so everyone should monitor the retail sales numbers to get an idea on inflation.

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