Retail sales up a sharp 1.7% in March from February driven by a spike in gas prices due to the Iran war
Summary
Retail sales in the United States grew by 1.7% in March compared to February, mainly due to a big increase in spending on gasoline. The rise in gas prices is linked to the ongoing Iran war, which has reduced oil supply and pushed costs higher.Key Facts
- Retail sales rose 1.7% in March after a 0.7% increase in February, according to the U.S. Commerce Department.
- Gas station sales jumped 15.5%, driven by higher gas prices caused by the Iran war.
- Excluding gas, retail sales increased by 0.6%, supported by tax refunds and warm weather.
- Department stores saw a 4.2% sales rise; furniture stores increased 2.2%, and online retailers grew 1%.
- The Iran war started on February 28 and has blocked part of the world’s oil supply by closing the Strait of Hormuz.
- Gas prices surpassed $4 per gallon for the first time since 2022, costing consumers more at the pump.
- Inflation increased to 3.3% in March year-over-year, the largest rise since May 2024, largely influenced by higher gas prices.
- Consumers are spending more on necessary items, cutting back on non-essentials like dining out, which rose only 0.1%.
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