Consumer spending unexpectedly stagnated in May as employment prospects dimmed and rising inflation caused Americans to cut back on buying, Bloomberg reported.

Purchasing was little changed after a 0.3 percent gain the prior month that was smaller than previously estimated, according to figures released by the U.S. Department of Commerce. Prices excluding food and energy rose more than forecast.

Walgreen Co. is among retailers that indicated that 9.1 percent unemployment and higher gasoline and grocery bills have prompted shoppers to pare back purchases of less essential goods. Federal Reserve policy-makers said the restraint on purchasing power may prove temporary as commodity prices start to decline, allowing the economy to pick up later this year.

“This quarter is going to be very slow,” said Christopher Low, the chief economist at FTN Financial, in an interview with Bloomberg. “The biggest explanation for that is gas prices, so obviously the fact that oil has fallen quite a bit in the last couple weeks is a really good thing. Relief just in time.”

Economic growth slowed in the first quarter after surging energy costs strained consumer finances. Labor markets have begun to worsen this quarter, with payrolls growing by 54,000 workers in May, the fewest in eight months. Unemployment climbed to 9.1 percent, according to June 3 numbers.