Inflation is at its highest level in four decades, but it didn’t stop Americans from getting busy at retail establishments in January. Retail sales rose 3.8% in the first month of 2022, a pretty significant increase from December.
If you’re wondering what’s included in the retail sales category, it’s a collection of goods that includes gasoline, food, cars, and clothing.
There was a massive uptick in online shopping, which saw a gain of 14.5%. Furniture and home furnishings rose over 7%, and cars and car parts were up almost 6%.
Bars and restaurants saw sales go down 0.9%. You can blame some of that on the strict mask guidelines in several states and that fact that many people limit the drinking in what is called a “dry January.”
Here’s what economist Gus Faucher told CNBC.
“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.”
Add comment