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By New_Deal_democrat December 11, 2014 10:07 am
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Lower gas prices power US retail sales to new record

This morning we got the first good evidence that the big decline in gas prices is helping American consumers.  Retail sales ex- gas increased +0.9%.  Total retail sales increased +0.7%.   October retail sales were also revised up +0.2% to +0.5%.  Here's the graph of retail sales since January 2013:

Since inflation was unchanged in October,  that means real retail sales in October set a new high.  Here are real retail sales through October with this morning's revision:

November prices are likely to be unchanged again, or even to show a decrease.  This means real, inflation-adjusted retail sales in November may actually have increased more tha +0.7%.

This is solid evidence that the decline in gas prices is having a positive effect on the US economy, and average American households.

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