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Business•FEB 19, 2025

U.S. Retail Sales Slump in January as Inflation Continues to Squeeze Consumer Budgets

U.S. retail sales unexpectedly fell in January, marking a troubling sign for the health of the consumer-driven economy. The 1.2% drop in retail sales—the sharpest monthly decline in over a year—was largely attributed to persistent inflationary pressures that have continued to weigh heavily on household budgets. From electronics to apparel, discretionary spending categories saw the most significant pullback, suggesting that American consumers are tightening their belts in response to rising prices.

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