US retail sales rebound more than expected in August; import prices surge

U.S. retail sales rebounded strongly in August — shoppers boosted spending on goods, restaurants and bars, and back-to-school buying lifted online and clothing sales.
Underlying retail sales (excluding autos, gas and building supplies) jumped sharply, strengthening expectations the Fed will raise interest rates to fight inflation.
Import prices rose notably (biggest yearly increase since 2022), adding to inflation worries even as consumers tap savings and hunt for cheaper items.