January Retail Sales Surge 3.8% Despite Inflation
According to a report from the U.S Commerce Department, retail sales surged 3.8% in January despite high Inflation.
The sales are increasingly better than expected, as Dow Jones had predicted a 2.1% increase.
Fueled by increasing pay, solid hiring and enhanced savings, Americans ramped up spending at retail stores.
Last month's increase was the largest since last March 2021, when most households received a final federal stimulus check of $1,400.
Online retailers contributed the most to January's performance, posting a 14.5% increase over last year.
Sales in the furniture and home furnishing market increased 7.2% last month, while motor vehicle and parts dealers saw a 5.7% rise.
Hospitality venues saw only a 0.9% decline in sales, despite the significant escalation of Covid cases being included in last month's report.
Chief Economist at PNC Financial, Gus Faucher, said: "Consumers say they are worried about inflation, but they continue to spend. Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices."
