Consumers spent more heavily during the crucial holiday season, though inflation means their dollars did not go as far. Retail sales in the US rose 0.6% in December, a stronger-than-expected increase compared to forecasts of 0.4% growth. Spending increased in categories like cars, groceries, home improvement, and clothing while pulling back at gas stations, pharmacies, and electronics stores. Restaurant and bar spending was flat for the month. While the job market and wage gains have supported spending, high-interest rates and inflation pose risks going forward.