This compares with a 1.9 percent jump in February. Slower sales of cars, clothing and hardware contributed to the March slowdown. But, still another report today, by Salomon Brothers, showed that March same-store sales by the nations's largest retail chains rose by 5.4 percent in March. Approximately 2.0 percent of this jump was attributed to pre-Easter sales. Since the first of the year the CPI has risen at a 4.0 percent annual rate.
Wage inflation is non-existant.
Real earnings declined in 4 of the last 5 months and in the last year. Finally, although retail sales throughout the economy slowed during March, same-store sales by large chains were up by 5.4 percent. Altogether, we seem to have a picture of controlled inflation and increased consumer caution, coupled with rising February sales by businesses and a selective pickup in consumer spending in March. Bond and stock market traders must have liked what they saw today. Both markets closed substantially to the upside.