Retail sales rise faster than expected in January despite surging inflation

U.S. consumers accelerated their retail spending in January as COVID-19 cases eased nationwide, even as they confronted the hottest inflation in four decades.

Retail sales, a measure of how much consumers spent on a basket of goods ranging from cars to food and gasoline, rose 3.8% from the prior month, the Commerce Department said Wednesday. Economists surveyed by Refinitv expected sales to rise 2%. It marked a sharp rebound from December, when sales unexpectedly dropped 2.5%.