Retail sales jump as prices soar at fastest pace in 40 years

Consumers continued to spend in April, with retail sales jumping 0.9% from the prior month, according to government data released on Tuesday.

Why it matters: Shoppers aren't pulling back on spending even as prices soar at the fastest pace in 40 years. This is a good sign for the American economy amid fears of a coming recession as inflation rages.

• Retail sales rose 8.2% from a year ago, a period when inflation jumped by 8.3%.
• Stripping out spending on gasoline, retail sales were even stronger, rising 1.3% from the prior month.

Details: Consumers upped spending at restaurants and bars, and spent more on clothing, furniture and cars.

• Spending on gas fell 2.7% compared to March, when gas prices rose as Russia invaded Ukraine.

The bottom line: Economists are keeping a close eye on consumer spending for signs of how they are grappling with soaring prices. So far, activity remains robust.

What to watch: Walmart, the nation's biggest retailer, says it sees some signs that cash-strapped consumers are adjusting their behavior because of higher prices.

• CFO Brett Biggs told CNBC on Tuesday that the company is seeing more sales of half-gallons of milk and its private brand of lunch meat. The company expects inflation to continue to crimp its business this year.

Editor's note: This story has been updated with additional details from the report.