By Kristin Myers, Editor-in-Chief

What's Happening Today

It seems inflation isn't stopping many of us from shopping (I know it hasn't stopped me).

Retail sales climbed 1% in June, even as inflation jumped 9.1% from a year ago, near a 41-year high. The increase came after retail sales dropped 0.1% in May, leading many to believe that rising prices were pushing consumers away from stores.

Inflation is also changing spending habits as Americans shopped less at department and clothing stores, and more at restaurants and gas stations.

Retail sales are very important, since consumer spending makes up about 70% of the U.S. economy. If shoppers like you and me keep spending money, the economy will remain strong, making the likelihood that the U.S. will tip into a recession less likely.

Stocks have been tumbling all week, but with strength in retail sales, U.S. equities are surging higher today, with the Dow, S&P 500, and Nasdaq all gaining over 1%.

- Kristin

Editors' Picks

Your Shopping in June Helped Boost Retail Sales by 1% (The Balance)

Why Retail Sales Are Important (The Balance)

US Long-Term Inflation Expectations Drop to One-Year Low (Bloomberg)

Is Your Leased Car Actually a Gold Mine? (The Balance)

Buying a New Car vs. Buying a Used Car: Which Should You Choose? (The Balance)

Inflation Will Likely be Tamed Next Year When Rate Hikes Start to Work, IMF Chief Says (CNBC)

Joe Manchin Won't Support Climate, Tax Measures in Economic Package (The Wall Street Journal)

How U.S. Treasury Yields Affect the Economy (The Balance)

Term of the Day

Retail Sales

Retail sales involves the purchases of finished goods and services by consumers and businesses. These goods and services have made it to the end of the supply chain, which starts with the goods producer or provider and ends with the retailer.

The beginning of the supply chain includes commodities and other raw materials. Manufacturers create the product. The middle of the supply chain is wholesale sales. They distribute the goods and services to retailers. The retailers then sell them to the consumer.

Off the Charts

Along with today's report from the Census Bureau showing a rise in retail sales, the University of Michigan's preliminary estimate of its Consumer Sentiment Index for this month ticked higher to 51.1 from last month's record low of 50.

Demand remained resilient in the face of rising inflation, with some shoppers surveyed saying they believe it's better to buy now to avoid future price increases. However, the index still remained near last month's historic low as higher prices continued to weigh on sentiment, and assessments of personal finances hit their lowest point since 2011.