Retail sales slowed in January, up for seventh straight month

Besides snowstorms, higher gasoline prices are cutting into consumers’ budgets as the oil prices rose above $85 a barrel pushing up prices 1.4 percent at the pump. Oil import prices were up 3.4 percent in January from December, and have increased 14.3 percent on the year.

Excluding volatile autos and gasoline, retail and food sales rose 0.2 percent in January.

But so-called core retail sales, which exclude autos, gasoline and building materials, increased 0.5 percent after falling 0.1 percent in December.

The Commerce Department also reported that businesses increased their inventories for a 12th consecutive month in December, signaling further gains in manufacturing.

Consumer spending represents about 70 percent of the economy and have lagged behind as the economic recovery has picked up pace. Consumers picked up their spending through the final few months of the year, rising 4.4 percent in the fourth quarter, the fastest pace in nearly five years, providing a boost to economic growth. 

Meanwhile, the price of imports increased by 1.5 percent in January from the month before, the Labor Department said Tuesday. That followed an upwardly revised 1.2 percent gain in December, from 1.1 percent.

Import prices are up 4.3 percent over the past three months, the biggest three-month gain since a 5.6 percent jump in June 2009.