US retail sales rose by the most in five months in a broad advance, showing consumers continued to spend despite rising gasoline prices.
A key gauge of US consumer prices rose by more than expected last month, bolstering the case for Federal Reserve officials to raise interest rates next week.
Federal Reserve officials have signaled they’re prepared to raise interest rates if inflation doesn’t improve soon, but they may find their main policy tool will do little to restrain some of the forces pushing up prices now.
The US economy expanded at an unrevised 1.5% pace in the second quarter, though underlying details showed stronger consumer spending and business investment than initially reported.