Retail sales jump as Americans defy inflation and rate hikes

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — America’s consumers rebounded last month from a weak holiday shopping season by boosting their spending at stores and restaurants at the fastest pace in almost two years, underscoring the economy’s resilience in the face of higher prices and multiple interest rate hikes by the Federal Reserve. Retail sales jumped 3% in January, after having sunk the previous two months. It was the largest one-month increase since March 2021. Driving the gain was a jump in car sales, along with healthy spending at restaurants, electronics stores and furniture outlets. Some of the supply shortages that had slowed auto production have eased, and more cars are gradually moving onto dealer lots.