Retail Sales Bounce Back in August Despite Soaring Gas Prices

Retail sales in the US rebounded at a better-than-expected 1.2% increase in August after recording a revised 0.5% dip in July, according to Commerce Department data released Wednesday.

The solid spending report comes as the Federal Reserve is widely expected to lift its short-term interest rate for the first time in three years on Wednesday to fight stubbornly high inflation.

Economists warn that rising gas prices could challenge consumer spending going forward. The average price for a gallon of regular gasoline rose overnight to $4.37 on Wednesday, about 47% more than before the war began.