CIBC Research discusses its reaction to today's US retail sales print for the month of March.

"Total retail sales made progress in the US in March, but higher prices flattered the figures. Total retail sales advanced by 0.5% on the month, a tick below the consensus forecast, but a positive revision to the prior month more than offset that slight disappointment (now +0.8% vs. +0.3% previously). Higher gasoline prices were a part of the story, as receipts rose strongly at gas stations, while a solid advance in restaurant spending as Covid cases faded also contributed to the headline gain," CIBC notes. 

"However, an upwards revision to the prior month also offset that downside surprise. The March figures will clearly look worse in volume terms, and we continue to expect elevated gas prices to squeeze consumption in other spending categories in Q2. We also look for consumption to shift away from goods and towards services as the pandemic fade," CIBC adds.