(Bloomberg). — U.S. retail sales increased in October for the third consecutive month, as higher prices drove merchant receipts up and households demanded remained strong. 

Commerce Department data Tuesday showed that the value of retail sales increased in October, the highest in seven months. This was in spite of a 0.8% increase in September. Except for motor vehicles and gas, October sales were up. The figures aren’t adjusted for price changes.

According to a Bloomberg Survey of Economists, the median expectation was for an increase of 1.4% in total retail sales.

This broad-based increase in consumer spending shows how Americans have been able to maintain a strong pace of merchandise purchases and increased savings. While total retail sales remain well above pre-pandemic levels of about $1 trillion, there is a risk that future cooling in the demand will be caused by an inflation-driven drop in consumer sentiment.

U.S. prices are rising at the fastest pace in 30 years as businesses pass on growing labor and input costs to customers, but it’s hard to tell just how much that’s impacting demand since the figures aren’t adjusted for inflation. Next week will see the release of inflation-adjusted consumer spending figures for October.

Results from Walmart Inc. (NYSE:) Home Depot Inc. (NYSE 🙂 released earlier Tuesday a report showing that consumers are generally maintaining strong merchandise demand despite higher inflation. Comparable sales at Walmart in the latest quarter exceeded forecasts while home-improvement retailer Home Depot reported stronger-than-expected results.

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