Retail sales rebound more than expected despite rising energy prices

Retail sales rose 1.2% in August compared to the previous month, reaching $773.9 billion, according to the preliminary estimate from the Census Bureau. The result exceeded the 0.8% increase forecast by analysts and reversed the revised 0.5% decline recorded in July.

Consumer spending remains strong

Excluding gas stations, retail sales rose 1.1%. Sales at restaurants and bars also increased, as did purchases of vehicles and other goods.

The core group, which excludes automobiles, gasoline, building materials and food services, rose 1.4% in August, after falling 0.4% in July.

The data show that consumers maintain their spending power, although part of the growth reflects rising prices and not necessarily a higher volume of goods sold.

Gas drives up the average, but does not account for the entire rebound

Sales at gas stations rose 3.1% month-over-month and were 21% higher than in August 2025. The figure is seasonally adjusted but not adjusted for price changes.

The national average price of gasoline in August was above the $4 per gallon threshold (about $4.06 according to the BTS). The price did not remain above that level every day: in the middle of the month, it dropped below $4 and then rose above it again. In addition, the Consumer Price Index (CPI) rose by 0.4% in August, and gas prices increased by 3.9%.

The rise in energy costs comes amid the conflict with the Iranian regime and the turmoil surrounding the Strait of Hormuz, a key route for global oil transport.