UK retail sales returned to growth in March, reversing a February decline as motorists topped up on fuel amid surging petrol prices driven by the Iran conflict.
The Office for National Statistics reported a 0.7% rise in retail sales volumes for the month, beating forecasts of a 0.1% drop. February saw a downward revision to a 0.6% decline.
The surge was driven primarily by fuel sales, which jumped 6.1%—the highest since April 2021. Statisticians linked this to a brief period of exceptionally high demand as Middle East tensions pushed forecourt prices sharply higher. Fuel sales by value climbed 11.6%.
Petrol prices have risen 18.5% to 157.34 pence per litre, while diesel has climbed 33.4% to 189.88 pence per litre, according to RAC data.
Clothing retailers also benefited from improved weather, with sector sales up 1.2%. Technology stores saw growth from new product launches. Food sales dipped 0.8%.
For the first quarter overall, retail sales volumes rose 1.6%, supported by a strong January. ONS senior statistician Hannah Finselbach said motor fuel sales drove the quarterly figure as motorists filled tanks following the start of conflict in the Middle East.
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said the data held up better than expected despite the fuel-driven headline. “Even excluding petrol retail sales volumes nudged up, showing that households largely brushed off the initial shock of higher energy prices,” he said.