U.S. retail sales rose 1.7 percent amid high gas prices
Retail sales grew 1.7 percent in March as fuel costs and tax refunds drove spending. Analysts expect a slowdown as high energy prices weigh on consumers.
Retail sales in the United States increased more than expected in March as the ongoing conflict between Israel and Iran pushed gasoline prices to record highs. According to the Commerce Department, retail receipts jumped 1.7% last month, marking the largest gain since early 2025. This surge was primarily driven by a record 15.5% increase in spending at service stations, though tax refunds also helped sustain broader consumer activity elsewhere. While the headline sales figures were strong, economists warn that the diversion of household funds toward expensive fuel could eventually dampen discretionary spending.
The sharp rise in fuel costs, including WT GASOLINE, reflects broader volatility in energy markets. Global benchmarks such as Brent Crude Oil and West Texas Oil have climbed by more than 30% as geopolitical tensions cast a shadow over the global economic outlook. President Donald Trump indicated on Tuesday that he does not intend to extend a two-week ceasefire, further complicating the regional situation. Data from the U.S. Energy Information Administration showed that retail gasoline prices soared 24.1% in March alone. Consequently, the monthly Consumer Price Index rose 0.9%, with fuel being the primary driver of inflation. This environment has weighed heavily on the public, as consumer sentiment plunged to a record low in April.
