Retail sales - inflation?

Discussion in 'Economics' started by belmondo, Jun 12, 2008.

  1. belmondo

    belmondo

    Today's gain in retail sales is explained via "stimulus check". And how about inflation?

    example: before raising prise of milk, it cost $1. now it is $1,1. that is 10% increase in sales.

    so I wonder, how much is stimulus check and how much is inflation.

    maybe my thinking is totally wrong :)
     
  2. Daal

    Daal

    y-o-y retail sales are about -2% adjusting for cpi
     
  3. The only reason for the rise in retail sales is higher costs associated with gasoline and food (13.8% and 10% increases QoQ).

    Things are really great when you can buy less gasoline and less food, no one is even thinking about buying anything non-essential, and we have lovely $4+gasoline and $7+ bushel of corn.

    And the market rallies.

    Don't buy the bullshit.