# US retail sales surge despite inflation worries

> Strong August spending shows consumer resilience, but rising import prices and wage pressures threaten the recovery.
- Title: US retail sales surge despite inflation worries | Shortify
- Summary: Strong August spending shows consumer resilience, but rising import prices and wage pressures threaten the recovery. Retail sales jumped 1.2% in August, the…
- Keywords: us retail sales, august 2026, consumer spending, inflation, federal reserve, interest rates, import prices, gdp growth, commerce department, purchasing power, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/economy/articles/us-retail-sales-rebound-sharply-123724094.html
- Published: 2026-09-16T18:40:07+00:00
- Read time: 1 min
- Topics: us retail sales, august 2026, consumer spending, inflation, federal reserve, interest rates, import prices, gdp growth, commerce department, purchasing power, business, finance
## Retail sales jump 1.2% in August
US retail sales rebounded sharply last month, the largest increase since March, as households boosted purchases across goods and services including restaurants and bars.

> The pace of underlying consumer spending looks to be advancing at a healthy rate.
## Economists upgrade growth forecasts
The stronger-than-expected retail report prompted Goldman Sachs to raise third quarter GDP growth to 3.0% and JPMorgan to boost it to 3.5%, up from earlier estimates.
## Core retail sales surge 1.4%
Excluding autos, gasoline, building materials and food services, core retail sales jumped 1.4% in August, the largest gain since September 2024, beating economist forecasts of 0.4%.
## Fed raises rates a quarter point
The Federal Reserve raised its benchmark overnight interest rate by 0.25% to the 3.75%-4.00% range and signaled further increases ahead as it battles inflation.
## Import prices surge 7.0% yearly
Import prices jumped 0.7% in August and soared 7.0% year-over-year, the largest increase since August 2022, driven by higher costs for computers, semiconductors, and machinery.
## Chip prices up 19.1% annually
Imported computer and semiconductor prices surged 19.1% year-over-year, reflecting the artificial intelligence buildout and strong demand for advanced technology.
## Consumers tapping savings, losing power
Households are spending despite high inflation by drawing down savings and benefiting from stock market gains, but lower-income families struggle with rising energy and food costs.

> More consumers are losing their purchasing power.
## Current pace unsustainable, economists warn
With gasoline prices rising sharply and inflation-adjusted wages declining, economists say August's retail sales momentum cannot continue into the fourth quarter and 2027.

> Progress on inflation simply isn't good enough.
## Key takeaway

Retail sales jumped 1.2% in August, the biggest gain since March, but economists warn the pace is unsustainable as inflation erodes purchasing power and lower-income households struggle.