“(April’s sales were) probably an outlier,” Wolf said. “It was a noisy past two months. If you recall, March came in well above expectations. April was worse. Easter played a role. Weather played a role. I stick to my underlying thesis that there’s a slowdown in consumer (spending), but it’s too soon to call the consumer toast.”
He said the core inflation number was good, but higher food and energy prices mean a further slowdown in consumer spending.
The Labor Department said wholesale prices rose 0.7% in April, down from a 1% increase in March. Gasoline prices jumped 8.2%, following increases of 8.7% and 5.3% in the previous two months.
Outside food and energy, prices were unchanged last month, the second straight month the core inflation index was flat.