Rising inflation tightens squeeze on consumers

By DAMIAN J. TROISE
AP Business Writer

Retail sales took an unexpected dip in December in what could be a signal that persistently rising inflation is prompting a pullback in consumer spending. Consumers paid more for everything from groceries to cars in 2021 as companies passed along the costs of pricier raw materials and supply chain delays. Spending remained strong thanks to pent-up demand throughout the year, despite the rising costs and longer waits for big-ticket items like cars and furniture. Pressure from inflation has been building, though, as have concerns that consumers will eventually pullback on spending as they tire of higher prices.