Retail sales surge 3% in January despite stubbornly high inflation

Spending at retail stores rose more than expected in January as consumer demand remains strong even in the face of stubbornly high inflation and rising interest rates.

Retail sales, a measure of how much consumers spent on a number of everyday goods, including cars, food and gasoline, rose 3% in January, the Commerce Department said Wednesday. It marked the biggest monthly gain since March 2021 and is well above the 1.8% estimate from Refinitiv economists.