WASHINGTON — Americans spent more money on cars, furniture and at hardware stores to boost retail sales to a third monthly increase in September.
The string of gains since July followed declines in May and June. Those had raised worries that the country could be in danger of toppling back into recession. Economists caution that while the economy is growing, the expansion is not strong enough to lower high unemployment and offset weak income growth.
The Labor Department reported inflation outside volatile food and energy costs was flat for the second straight month. And in the past 12 months, core prices rose only 0.8 percent, the smallest yearly gain in more than 49 years.
The sluggish economy is keeping a lid on prices. Consumers are holding back on spending, with unemployment high and wages stagnant. That makes it difficult for retailers to pass on any price increases.
The Associated Press
