WASHINGTON—U.S. retail sales increased solidly in March, boosted by record-high gasoline prices, but consumers are starting to feel the pinch of high inflation, with online spending posting back-to-back declines for the first time in more than a year.
The report from the Commerce Department on Thursday, which also showed stronger retail sales growth in February than initially thought, suggested consumer spending picked up in the first quarter, helping to underpin the overall economy.
A tightening labor market, which is driving up wages, and massive savings accumulated during the pandemic are providing some cushion against inflation. Annual inflation surged by the most in more than 40 years in March, though there are signs price pressures have peaked and should start to gradually abate.
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