By Manuel Gutierrez, Consulting Economist to NKBA

Retail sales in January rise sharply to $650 billion, a 3.8 percent increase over December.

• January retail sales are the highest ever recorded, a YOY gain of 13 percent.
• Inflation is a significant factor, accounting for 7.5 percent of the increase.
• The growth is led by the online sales, with a 14.5 percent increase over December.
• Other key retail sales growth contributors include Department Stores, up 9.2 percent, and Furniture Stores, up 7.2 percent.

Highest-ever January retail sales driven by inflation and online shopping.