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Spending in that category leaped 9.3% from a year ago alongside a 3.8% rise in furniture and home furnishing spend. What’s more, rising wages, which have helped consumers feel more confident about their economic situations, also led to an uptick in spending at food service and drinking establishments, while fuel prices helped drive a more than 12% increase in spending on gas. Excluding the volatile auto component, which showed the pickup in gas sales and a 4.4% year-over-year rise in car parts and dealers, retail sales rose 0.3% compared to an expected 0.5% pick up. Meanwhile, the Labor Department’s consumer price index rose 0.2%, matching Wall Street expectations, suggesting the drop in March – the first in 13 months – was a temporary blip. Increases in rent costs, food prices, and gasoline helped boost the index.   The core measure of CPI, which strips out food and energy prices, rose 1.9%, virtually in line with the 2% expectation. April was the second month in a row core consumer inflation rose less than expected, though economists at Barclays view that as a transitory issue pressured by deflation in vehicles and apparel with the effects of a strong dollar and higher energy prices having dissipated.   “We see structural changes in the care retailing sector and competition among department stores as likely weighing on car and apparel prices. On the other hand, we believe that core services inflation remains robust, shelter in particular. We think it will continue to support a gradual improvement in inflation pressures,” they said.

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