U.S. retail and food-services sales rose by 0.6% in June to $720.1 billion

marking a rebound after two months of decline and beating expectations of just a 0.1% increase, according to Barron’s Trading Economics. Year-over-year sales are up around 3.9%, driven in part by inflation and rising prices due to tariffs, rather than purely increased volume. Reuters. Core retail sales (excluding autos, gas, building materials, and food services) advanced 0.5%, reinforcing steady consumer demand. The Friday data, along with a drop in weekly jobless claims to a three-month low, suggests the Federal Reserve may hold off on interest rate cuts for now, given solid consumer spending and labor market strength. Analysts warn the growth may be partly front-loaded ahead of further inflation, tariffs, and rising costs—particularly in discretionary categories like electronics, furniture, and appliances, where sales remain muted. Consumer spending remains resilient and helped markets rally this week—but much of the growth reflects price inflation. Businesses and policymakers will now watch whether volume-driven demand is sustained into the second half of the year.