According to the Commerce Department, January saw a sharp rebound in consumer spending due to rising inflation and post-holiday boom.

The month’s retail sales rose by 3.8%, which is much higher than the 2.1% Dow Jones estimate.

Since the numbers were not adjusted to inflation, the 7.5% consumer price index increase for the month helped drive a reverse from December’s 2.5% drop. It was also revised lower than the 1.9% initial reported decline.

After falling 2.8% the month before, retail sales saw a 3.3% increase, excluding auto sales.

The percentage increase in online sales was highest, at 14.5%. Non-store retailers experienced a decrease of 13.5%. The sales of furniture and other home furnishings increased by 7.2%, while the motor vehicle and parts dealer saw an increase of 5.7%.

Sports goods, music and books sales fell by 3%. However, gasoline station receipts were down 1.3% due to a drop in fuel prices. Prices at the pump moved lower.

Year-over-year, retail sales increased 13%. This was driven higher by a 33.4% increase in gasoline station sales and 21.9% surge in clothing stores.

The pandemic-era economic barometer, food and drink establishments, had sales drop 0.9% in the month, despite the significant increase in Covid cases caused by the omicron spread.

These numbers were made possible by the fact that the country is facing the most severe inflation since 40 years. This helps to feed the retail sales figures. In order to curb rising prices, the Federal Reserve may increase its interest rate multiple times this year. The markets are looking to see the central bank raise its short-term benchmark borrowing rate by half a percent in March.

The retail news was not well received by the markets, and Wall Street pointed to an open market.

This is news breaking. Keep checking back for more updates.