US retail sales increased sharply in January, the latest in a series of hotter than expected economic data that may force the Federal Reserve to keep tightening monetary policy for longer to slow the American economy.
Retail sales, which include spending on food and fuel, rose 3 per cent last month over December’s levels, the Census Bureau said on Wednesday. It was one of the biggest monthly increases of the past 20 years and surpassed economists’ expectations for a 1.8 per cent increase.
The data, which included signs that American consumers have not pulled back spending on discretionary items despite high inflation, came a day after the labour department published inflation figures that showed price pressures were not easing as much as they were late last year.