U.S. retail sales rose 1.2% in August, the strongest increase since March, according to Commerce Department data reported by Reuters. Spending increased across a broad set of categories, including restaurants, bars and online retailers.
Core retail sales also advanced, prompting some economists to raise estimates for third-quarter economic growth. The strength suggests households continued spending despite persistent concerns about inflation and higher borrowing costs.
Separate data showed import prices rose 0.7% in August and 7% from a year earlier. Rising energy prices and higher costs for imported equipment and consumer goods could make it harder for inflation to cool in the months ahead.