Retail sales rise more than expected in March as energy costs increase

(AFP) The country's retail sales far exceeded expectations in March, according to government data released Tuesday reflecting the fallout from the war in the Middle East.

Sales rose 1.7% last month from the previous month to $752.1 billion, a larger rise than analysts expected and the biggest jump in a year, the Commerce Department said.

Compared with a year ago, retail sales rebounded 4%.

A 15.5% monthly increase in gas station sales

The acceleration was driven by a 15.5% monthly increase in gas station sales as energy costs rose in March because of the war.

Joint U.S.-Israeli strikes against Iran starting Feb. 28 triggered retaliation from Tehran, which virtually blocked the Strait of Hormuz, a key waterway for global hydrocarbon transit.

Excluding gas stations, overall retail sales rose only 0.6% on a monthly basis.

Among other categories, motor vehicle and parts sales were up 0.5% from February, while food and beverage stores were up 0.7%.