Retail sales jump 3% in January, smashing expectations despite inflation increase  

 

• Sales at retailers rose far more than expected in January as consumers persevered despite rising inflation pressures. 
• Advance retail sales for the month increased 3%, compared with expectations for a rise of 1.9%, the Commerce Department reported Wednesday. On a year-over-year basis, retail sales increased 6.4%, which was exactly in line with the consumer price index move reported Tuesday.
• Inflation, as gauged by the consumer price index, accelerated by 0.5% in the first month of the year, the Labor Department announced Tuesday. The sales report indicates that even with elevated inflation pressures, consumers continued to spend.
• The data comes as the Federal Reserve is grappling with rising prices that appear to be abating but are still well ahead of the central bank’s 2% annual target. There’s evidence that the increases are having an impact, though inflation remains persistent and could be aggravated by the economic reopening in China and rebounding growth across Europe.

(Source: CNBC)