July retail sales came in a tad lighter than expected at 0.5% m/m (consensus 0.6%) but June was revised up to 0.9% from 0.6%. Meanwhile, control group sales (which are a direct input to GDP) beat with a 0.5% gain (cons. 0.4%) and June was also revised up to 0.8% from 0.5% prior. On the surface: steady and solid consumer momentum. Under the hood: a rising share of sales growth is being “paid for” by inflation. Details in the 🧵