Walmart holds keys to inflation picture

Walmart, the largest retailer and private employer in the U.S., will serve as a valuable tool in gauging inflation when it reports earnings Thursday.

The retailer is a key indicator of how consumers are holding up, providing a sharper lens on household spending in comparison with the government’s consumer price index, which showed that inflation ticked up more than expected in March. 

Telsey Advisory Group estimates the retail behemoth will have solid results during the first fiscal quarter as higher-income shoppers spend more at its stores because of inflationary pressures, the firm wrote in a note Friday. 

“Walmart should also benefit from trade down, as lower income consumers continue…