Retail sales in the US bounced back in January as consumer prices slowed down and wages grew, the National Retail Federation (NRF) reported.

Data from the US Census Bureau showed that overall sales in January rose 3 per cent from December 2022 and 6.4 per cent year on year. By comparison, December sales declined by 1.1 per cent month on month but were up 5.9 per cent from 2021.

January sales were up in all but one retail category on a yearly basis, led by sporting goods stores, clothing stores and online sales, and increased across the board monthly. 

Clothing and clothing accessory stores, which include jewellery shops, were up 2.5 per cent month over month seasonally adjusted and 6.6 per cent unadjusted year over year.

“Consumer spending clearly picked up after the holidays,” NRF Chief Economist Jack Kleinhenz said. “Sales were helped along by job and wage growth, slightly lower inflation and unusually warm and dry weather that preceded February’s record cold.”

He added, “A large cost-of-living adjustment gave Social Security beneficiaries more money to spend, and many consumers were still drawing on savings built up during the pandemic.”

Overall inflation in the US moderated in January, reaching 6.4 per cent, down slightly from 6.5 per cent in December last year.