Retail sales in the U.S. rose 1.7% in March, driven by a spike in gas prices due to the ongoing Iran war, which has lasted eight weeks. This follows a revised 0.7% increase in February, according to the Commerce Department’s report. Excluding gas prices, the increase was a modest 0.6%, supported by government tax refunds and favorable weather.
Sales at department stores rose 4.2%, while furniture and home furnishings stores saw a 2.2% increase. Online retailers experienced a 1% gain, and consumer electronics and appliance stores posted a 0.9% increase. The report indicates that inflation is rising, with consumer prices up 3.3% in March from a year earlier, marking the largest yearly increase since May 2024.
Major retailers like Target and Walmart are expected to report their fiscal first-quarter earnings next month, providing insights into the impact of the Iran war on consumer spending.
