From Straight Arrow · · 1m 50s
Retailers expect big holiday spending despite rising prices
U.S. holiday sales projected at $1.013 trillion as inflation pressures mount.
In brief
U.S. holiday sales projected at $1.013 trillion as inflation pressures mount. Retailers forecast $1.013 trillion in holiday sales but rising prices could reduce consumer spending power. Originally reported by Straight Arrow.
Holiday sales forecast
U.S. retail sales projected to climb 4.2% from last year, reaching $1.013 trillion this holiday season.
Inflation concerns
Rising prices threaten to dampen consumer spending despite strong holiday sales projections.
Retail federation president
Matthew Shay called shoppers 'unsung heroes of our economy' during strong consumer spending.
Inflation impact
Higher diesel prices increase shipping costs across sectors for retailers.
K shape economy
Mark Mathews described a K shape economy where lower-income households face disproportionate spending cuts.
Rising producer prices
U.S. producer prices jumped 1.3% in September, up 6.3% from a year earlier.
Energy price surge
Wholesale gasoline prices surged 20.3% in September, driving inflation higher.
Consumer price rise
Consumer prices climbed 0.6% in September, pushing annual inflation to 3.7%.
Fed rate hike odds
Probability of October Fed rate hike increased from 17% to 28% in a week.
Economist warning
Mark Zandi warned inflation could become more entrenched before year-end.
Core retail sales
The National Retail Federation excludes automobile dealers and restaurants from holiday sales forecasts.
K shape impact
Rising financial wealth supports high-income households while lower-income groups face spending cuts.
Inflation spread
Price pressures spreading beyond gas pumps to transportation and warehousing costs.
PPI report
PPI shows price pressures spreading to final-demand services and transportation sectors.
Fed rate decision
Federal Reserve may raise interest rates again before year-end despite election timing.
Holiday spending outlook
Rising prices could dampen consumers' spirits despite strong holiday sales projections.
What it means
Retailers forecast $1.013 trillion in holiday sales but rising prices could reduce consumer spending power.
