Retail Sales; Business Inventories; Import & Export Prices

Summary: Hook in mouth headlines read...

Retail sales ex auto improving; Business Inventories build less than expected; Import Prices increase in line with expectations.

Under the sheets... Double digit stagflation confirmed again with declining retail sales & bloating business inventories.

Import prices goes back to back with the largest one month increase since records started in 1988.

Retail Sales Apr -0.2% vs +0.2% Full Report

Inside the number: NOT adjusted for PRICE INCREASES. Its fill yer belly or yer gas tank,

retail sales up on increased grocery prices, with John Q pulling back on durables and at the dept store & the pump.

Despite higher prices; Gas sales -0.4%; Yoy +16.4%; motor vehicles -2.8%; Yoy -7.3%; furniture +0.1%; Yoy -5.1%.

Dept Stores -0.1%; Yoy -2.3%; retail sales -0.3%; Yoy +1.8%; grocery stores +0.6%; Yoy +6.1%; retail sales ex-auto Apr +0.5% vs +0.1%.

Business Inventories Mar +0.1% vs +0.5% Full Report

Inside the number: Yoy +5.2%; Figures NOT adjusted for PRICE CHANGES. Yes, Total Sales +1% vs -1%; Yoy +6.3% outstripping Total Inventories.

However, retail & manufacturing inventories building: Yoy Manufacturers Sales +4.7% vs Inventories +6.5%; Retailers Sales +1.9% vs Inventories +2.4%.

Double Digit Price Inflation Mirrored at Merchant Wholesaler levels: Yoy Sales +12.6%; Inventories +6.8%

Export Prices ex-ag. Apr +0.6% vs +1.3% Full Report

Inside the number: Import Prices ex-oil Apr +1.1% vs +1.1%.

Back to back; the largest one-month increase for the index since nonpetroleum prices were first published on a monthly basis in December 1988.

Capital goods prices increased 0.8%, the largest increase for the index since an equivalent rise in May 1995.

Yoy: All exports +7.7%; Ag exports +32.3%; Food +31.6%; Industrial Supplies & Materials +13.8%; Non durable +17.4%;

Non ag +13.2%; Non Ag ex fuel & building materials +10.7%

All imports +15.4%; Petroleum +57.2%; Commodities +15.4%; Food +14.5%; Industrial Supplies & Materials +37.3%; Ex petro +17%; Non durable ex petro +19%

We gently repeat one of our mantras: ANYONE who claims stagflation to be under double digits is either a paid liar; a fool or both.

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