retail sales in the eurozone rose less than expected in january as household budgets continue to be squeezed by high inflation and rising interest rates retail sales volumes rose 03 in january partly offsetting a revised fall of 17 in december according to data from the european unions statistics agency eurostat released monday the reading fell below the 05 increase forecast by economists in a poll by the wall street journal on an annual basis the volume of retail sales was down 23 in january eurostat said the rise in sales was driven by food drinks and tobacco which together registered a 18 onmonth increase in january but eurostats measure for automotive fuels fell 15 however continued weak momentum in the economy is likely to result in a disappointing first quarter of 2023 for both retail sales and consumer spending overall as falling real incomes weigh on households economists at oxford economics said in a note ahead of the data release