American shoppers pulled back on their spending last month for the first time since August as stubborn inflation continued to bite and harsh weather curbed economic activity.

Retail sales dropped 0.9% in January from the previous month, the Commerce Department said, after two months of healthy gains. January's average temperature was the lowest since 1988, according to Pantheon Macroeconomics,

U.S. retail sales dropped sharply last month, in part because cold weather kept more Americans indoors and dented sales at car dealers and most other stores.

The consumer price index increased 3% in January from a year ago, Wednesday’s report from the Labor Department showed, up from 2.9% the previous month.

US wholesale prices rose in January by more than forecast on higher food and energy costs, adding to the growing pile of bad inflation news ahead of more potential tariffs threatened by the Trump administration.