Retail sales in the US rose 3.8 per cent during the holiday season in 2023 amid continued inflation and high interest rates, according to latest government data. 

Spending from November to December last year reached US$964.4 billion, topping the previous record of US$929.5 billion in 2022, the National Retail Federation (NRF) said, citing data from the US Census Bureau.

Gains were recorded in all but two of nine retail categories, with clothing and clothing accessory stores, which include jewellery shops, recording a 3 per cent year-on-year growth.

NRF earlier projected 2023 holiday sales to increase between 3 per cent and 4 per cent from 2022. Sales for the full year, meanwhile, grew 3.6 per cent over 2022 to a record US$5.13 trillion.

“Consumer spending was remarkably resilient throughout 2023 and finished the year with a solid pace for the holiday season,” NRF Chief Economist Jack Kleinhenz said. “Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labour market, underscoring a successful holiday season for retailers.”

US inflation rate was 3.4 per cent for the 12 months ending December 2023, compared to the previous rate of 3.1 per cent. Meanwhile, the US Central bank maintains policy rates in the range of 5.25 per cent to 5.50 per cent.