US retail sales declined by 0.8% month-over-month in January, four times higher than the US Census Bureau's estimates. Core retail sales — which excludes gas and auto sales — fell by 0.5% while experts expected gains of 0.2%.

Yahoo Finance Live co-hosts Brad Smith and Rachelle Akuffo break down the latest retail sales print, taking into consideration inflationary pressures still accosting consumers' wallets coming off of the 2023 holiday shopping season.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

BRAD SMITH: A US retail sales declined more than expected for the month of January. Retail sales falling 8/10 of a percent compared to the 2/10 of a percent that was forecasted. Sales, excluding auto and gas, also sliding compared to estimates for an increase here.

There you're taking a look at some of the figures the actuals where they came in at. And there's a few elements of this to break down. Of course, this another reading, though, more broadly on the consumer. And that resiliency picture that we've been talking about here continues to be in focus as we're trying to understand exactly how the Fed will read through. Of course, giving more weight to CPI, giving more weight to PCE. Retail sales not necessarily the top of mind for the Fed to really evaluate, but still another data point for them to get some understanding about what that resiliency may look like here.

RACHELLE AKUFFO: It's true. Even though one month does not a trend make. We know that we've been waiting for. We've been seeing these signs of the consumer pulling back, whether it's perhaps downgrading a little bit, perhaps, not buying as big of a meal or, perhaps, making some trade-offs in terms of supporting a brand versus some of the store own brands as well.

So it does feed into that. And we also have to bake in some seasonality, obviously, coming off the back of a big shopping season, as well, in January. People taking advantage of some of the sales. But we've continued to see, again, as we saw yesterday, low volumes, but seeing with inflation still up, those higher prices.

But perhaps the beginning of some of the concern that we were seeing about the consumer pulling back even more.

BRAD SMITH: Yeah, absolutely. Total sales that we were continuing to look at here, $700.3 billion, just to put that round figure on it or the larger figure on it. And then additionally, retail trade sales down 1.1% from December 2023, and down 2/10 of a percent below last year here.

So, ultimately, even as we think about where consumers are still kind of trying to prioritize their purchases in some of those goods versus services, this extremely goods-focused here, but still a larger question of what and where the pushback will continue to persist in terms of some of the consumers looking at where pricing is just too high or just where they don't need an additional appliance.

If I already got one dishwasher, I probably don't need two, especially, not in these small New York apartments, anyway.

RACHELLE AKUFFO: Indeed. And important to note that when it comes to the core, excluding auto and gas, that did fall-- that did fare a little bit better. That was at 5/10 of a percent slipping there versus the 0.2% expected.