Retail Sales and Consumer Behavior

The video discusses consumer spending trends, highlighting flat retail sales in April due to strong March performance. It examines the CPI report, noting lower-than-expected inflation. Key areas with persistent price increases include gas, shelter, and apparel. Economists predict easing gas prices in May, while shelter remains a significant inflation factor. Other categories like motor vehicle insurance and medical care also see price hikes, emphasizing consumer financial pressure.

What was the retail sales growth expectation for April?

• 0.3%

• 0.5%

• 0.4%

• 0.6%

Which two events contributed to strong spending in March?

• Black Friday and Cyber Monday

• Amazon's Big Spring sale and an early Easter

• Christmas and New Year

• Back to School sales and Halloween

What did the CPI report reveal about inflation in April?

• Inflation was higher than expected

• Inflation was lower than expected

• Inflation was not reported

• Inflation remained unchanged

Which category saw a 2.8% price increase from March to April?

• Apparel

• Gas

• Food

• Shelter

What is the largest factor in the monthly increase in core prices?

• Shelter

• Gas

• Apparel

• Food

What is owner's equivalent rent?

• The cost of owning a home

• The rent paid by landlords

• A hypothetical rent a homeowner would pay

• The actual rent paid by tenants

By how much did apparel prices rise month over month in April?

• 1.5%

• 2.0%

• 1.2%

• 0.7%

Which category did NOT see a notable price increase?

• Motor vehicle insurance

• Medical care

• Personal care

• Electronics

What is a significant impact of rising prices on consumers?

• Increased savings

• Lower interest rates

• Reduced purchasing power

• Higher wages

What do the retail numbers emphasize about consumer behavior?

• Consumers are saving more money

• Consumers are spending more on luxury items

• Consumers are feeling squeezed by price increases

• Consumers are unaffected by price changes