Retail sales rebound 3.8% in January as inflation soars
Online retailers saw the biggest gains, with sales popping 14.5 percent. Furniture sales jumped 7.2 percent and automotive sales climbed 5.7 percent. Meanwhile gasoline sales dropped 1.3 percent, while sales at bars and restaurants declined 0.9 percent.
Matthew Sherwood, global economist with the Economist Intelligence Unit, said the data shows how U.S. consumers have borne the brunt of inflationary pressures and supply chain problems.
“A significant factor in January’s strong performance is that retailers have been more readily able to pass on higher costs to their customers, particularly in terms of motor vehicles, home furnishings, home improvement, and clothing,” Sherwood said.
“It is no surprise then that U.S. consumers are in a grumpy mood.”
Consumers are spending the savings and wealth that they have accumulated over the course of the pandemic, said Bruce Garner of the credit card rewards company Card Curator. “Consumers have become desensitized to inflation,” he said in an email.
