NEW YORK - June 14, 2011 – U.S. retail sales fell in May for the first time in nearly a year as supply constraints curtailed sales of new cars and consumers remained generally cautious.

Separately, higher fuel costs lifted producer prices, but the increase was much slower than in recent months.

Retail sales were 0.2% lower in May, the U.S. Department of Commerce said, following April’s revised 0.3% rise. The decline was less steep than the 0.5% drop expected by economists polled by Bloomberg, but was the first monthly fall in sales since June 2010. On an yearly basis, sales rose 7.7%.

Car sales posted the sharpest drop since February 2010, falling 2.9% as parts shortages following the March earthquake in Japan squeezed inventories and led manufacturers to end discounts and raise prices. The high price of fuel has also weighed on demand for cars this year.

Excluding auto sales, total sales rose 0.3%, below April’s 0.5% gain but slightly ahead of the 0.2% forecast.