U.S. Retail Sales Up 1.7% in March on High Gas Prices

U.S. retail sales surged 1.7 percent in March, the largest monthly increase in more than a year, propelled by record-high gasoline prices amid the ongoing conflict between the United States, Israel and Iran, according to a Commerce Department report released Tuesday. The gain exceeded economists' expectations of a 1.4 percent rise and followed an upwardly revised 0.7 percent increase in February.

The spike was dominated by a 15.5 percent jump in sales at gasoline stations, the biggest since records began in 1992, as retail gasoline prices soared 24.1 percent during the month. The Middle East war has driven global oil prices up more than 30 percent, with the closure of the Strait of Hormuz disrupting key oil shipments and fueling inflation across the U.S. The Consumer Price Index rose 0.9 percent in March, more than triple the February rate, largely due to energy costs.

Excluding gasoline stations, retail sales still advanced a solid 0.6 percent, reflecting resilience in other areas bolstered by higher-than-average tax refunds. The average refund through late March was up 351 dollars from the prior year, providing households with extra cash amid the price squeeze. Sales at...