Retail sales ticked up in January. Not expected to last.
Retailers saw higher than expected sales in January after two months of declines, according to numbers provided by the U.S. Census Bureau. Sales increased by 3%, although the number is actually 2.3% if automobile sales are removed. With holiday sales starting in October, sales fizzled in November and December.
Inflation Increases
Just released inflation numbers from the U.S. Bureau of Labor Statistics show a faster increase in January 2023 than prior months. Since the start of 2022, the increase was 6.4%. RSM, a business consulting firm, is predicting two rate hikes to come in March and May as yet another attempt to cool consumer spending.
While charges for core goods upticked slightly from months prior, housing has been on a steady increase, more than doubling since the pandemic. RSM says energy prices will be a key decider in future interest rate increases.
