US retail sales rose twice as fast as expected last month, while wholesale inflation jumped by the most since 1973, suggesting the mortgage crisis has yet to really hurt consumers, even as the threat from rising prices intensifies.
Retail sales rose by 1.2 per cent in November, according to the Labor Department, against economists' forecasts of a 0.6 per cent rise. Core retail sales, which exclude volatile sales of motor vehicles and parts, rose by 1.8 per cent, after a 0.4 per cent rise in October.
Consumer spending has remained resilient in spite of the dangers of a housing recession, credit troubles and soaring energy prices.
Strong electronics sales offered hope for retailers of computer games, consoles, and flat-screen TVs this Christmas.
The producer price index, which measures price rises before goods reach consumers, rose by 3.2 per cent in November, the second biggest rise since the government began the measurement in 1947.
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Consumers shrug off debt woes
