US retail sales increased less than expected in November, likely payback after surging in the prior month as Americans started their holiday shopping early to avoid empty shelves.

A rotation in spending from goods back to services also appears to have held back retail sales last month, with the report from the Commerce Department on Wednesday showing a sharp drop in receipts at electronics and appliance stores.

Online retail sales were unchanged. Higher food and gasoline prices are probably curtailing discretionary spending.

The modest retail sales gain did not change views that the economy was regaining steam after a slowdown in the third quarter that was triggered by the Covid-19 Delta variant and rampant shortages.

In a nod to soaring inflation, the Federal Reserve on Wednesday said it would end its pandemic-era bond purchases in March, paving the way for three quarter-percentage-point interest rate increases by the end of 2022.

"Consumers are still doing their best to keep the economy's sails full and the recovery on track," said Christopher Rupkey, chief economist at FWDBONDS in New York.

Retail sales rose 0.3 per cent last month after surging 1.8 per cent in October.

Sales have now risen for four straight months.

They increased 18.2 per cent year-on-year in November.

Economists polled by Reuters had forecast retail sales rising 0.8 per cent.

Estimates ranged from as low as being unchanged to as high as a 1.5 per cent increase.

Several of the top US retailers reported in mid-November that they had noticed an earlier start to holiday shopping.

Retail sales could remain moderate in December, though higher savings and rising wages amid a tight labor market are supportive of spending.

Trillions of dollars in Covid-19 pandemic relief from governments across the globe fueled demand for goods, straining supply chains. The resulting shortages, ranging from motor vehicles to furniture and electronics, have raised goods prices.

Consumer prices increased a solid 0.8 per cent in November, with the year-on-year gain of 6.8 per cent the largest since June 1982.  Inflation is likely to remain high for a while.

A separate report from the Labor Department on Wednesday showed import prices increased 0.7 per cent in November.

"Consumers have been bombarded with messages about the impact of supply shortages on the availability of holiday gifts," said David Berson, chief economist at Nationwide in Columbus, Ohio.