The Commerce Department reported that August retail sales increased 1.2% from July, exceeding market estimates.

Retail sales are the headline gauge of household consumption, which accounts for a large share of U.S. economic activity. The control group, excluding volatile items such as autos and gasoline, draws particular attention.

The reading arrived amid continuing price pressure and supported the view that demand remains strong.

When one number moves rates

Strong consumption leaves firms room to keep raising prices. For a central bank, that raises the risk that inflation returns to target later than hoped.

Nominal retail sales, however, include price increases. Sales can rise in value while falling in volume, so the figure must be read apart from inflation-adjusted consumption.

Equity futures rose after the release, a broadly positive reaction. That consumption held up even as oil prices climbed offered some comfort.

For exporters in Korea and Taiwan, American consumption is direct demand. But if strength leads to rate increases, exchange rates and capital flows push the other way—which complicates the arithmetic.