US Retail Sales Rise 1.2% in August After Dropping in July

• US August retail sales rose 1.2% M/M (vs. est. +0.8%), with ex-autos and gasoline sales up 1.2% (vs. est. +0.4%), indicating strong consumer spending.
• Import prices increased by 0.7% M/M (vs. est. +0.5%), with ex-petroleum prices up 0.8% (vs. est. +0.3%), suggesting ongoing inflation.
• Despite the strong economic data, equity futures and bond yields showed minimal movement, as the market is considered 'fully priced' for potential Fed actions.

US August retail sales significantly exceeded expectations across various categories, indicating a resilient consumer despite higher gasoline prices. Import prices also rose more than anticipated, suggesting persistent inflationary pressures. However, equity and bond markets showed a muted reaction, as participants are largely 'fully priced' for the Federal Reserve's upcoming policy decision.