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March retail sales boosted by rush to get fuel in aftermath of Iran war
By Michele Maatouk
Date: Friday 24 Apr 2026
(Sharecast News) - UK retail sales unexpectedly rose in March as consumers rushed to get fuel after the outbreak of war in the Middle East, according to figures released on Friday by the Office for National Statistics.
Retail sales volumes increased by 0.7% in March following a 0.6% decline in February, and versus analysts' expectations for sales to be flat. Fuel sales shot up 6.1% for the month, the highest level since April 2021.
Excluding automotive fuel, retail sales were up 0.2% on the month. Clothing stores' sales volumes rose, which retailers attributed to the improved weather. Computer and telecoms stores, and non-store retailers, saw an increase in sales volumes as retailers reported new product launches, the ONS said.
For the quarter from January to March, retail sales were up 1.6%.
Hannah Finselbach, senior statistician at the ONS, said: "Retail sales rose in the three months to March, with commercial art galleries doing well earlier in the quarter and sales in beauty products stores rising as retailers reported launching new collections. Online shops also saw strong sales across the period.
"Motor fuel sales were up on the quarter, with retailers commenting that many motorists had been filling up their tanks in March following the start of conflict in the Middle East."
Matt Britzman, senior equity analyst at Hargreaves Lansdown, noted that much of the strength was driven by a sharp rebound in fuel sales, alongside a lift from warmer weather and seasonal spending, but said the underlying picture looks less convincing.
"Consumer confidence has already started to roll over and, with inflation and unemployment expected to rise from here, the risk is that this strength proves short-lived, with growth likely to stall in the coming months," he said.
"That backdrop should keep the Bank of England cautious next week, and we expect rates to remain at 3.75%, but the messaging is likely to stay cautious as policymakers remain wary of lingering inflation pressures and the risk of second-round effects."
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