Retail Sales In January Dropped .8% As Inflation In Basics Including Food And Shelter Crowd Other Purchases
As the highest inflation rate in four decades continues into its fourth year at a still stubbornly 50% or more above the Federal Reserve target, Americans found themselves choosing basic staples like food and housing over other purchases this January 2024 as retail sales dropped .8% for the month according to the Census Bureau as reported by CNBC.
“The sales report is adjusted for seasonal factors but not for inflation, so the release showed spending lagging the pace of price increases. On a year-over-year basis, sales were up just 0.6%.”
As measured on a year over year basis, retail sales were up just .6% with inflation coming in above 3% pushed by housing costs and other basic staples. Sales in building materials and gardening stores led the way with a jump of 4.1% for the month despite frigid temperatures that some blamed for the larger steep drop in retail sales to start the year.
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