U.S. Consumer Spending Surges 0.8% in March Amid Soaring Inflation

U.S. retail sales and food services surged 1.7% month-over-month in March 2026, exceeding expectations, with gasoline station sales leaping 15.5% due to a 25% rise in pump prices that accounted for 70% of the total growth.[4] Adjusting for inflation, real consumer spending volumes climbed 0.8%, supporting broader economic expansion even as the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.9% on a seasonally adjusted basis.[1][2][4] The all-items index increased 3.3% over the 12 months ended March 2026, with energy prices up 10.9% monthly, led by gasoline's 21.2% jump.[2] The 'control group'—excluding volatile gasoline, autos, and building materials—rose a robust 0.7%, showing spending strength beyond fuel.[4] Furniture and home furnishings led gains at 2.2%, followed by general merchandise stores up 1.0% and health/personal care stores at 0.5%.[4] Online sales at non-store retailers grew 1.0% for the third straight month, up 10.1% year-over-year, while bar and restaurant spending edged up just 0.1%.[4] Shelter costs, a key CPI driver, increased 0.3% monthly and 3.0% annually.[1][2] Consumer confidence edged up 0.8 points to 91.8 in March, with the Present Situation Index rising 4.6 points to 123.3, reflecting stable views on business and labor markets.[3] Spending plans shifted toward essentials like utilities, healthcare, restaurants, and streaming services, while vacation and foreign travel intentions dipped amid global conflicts and rising electricity costs.[3] Food prices held steady monthly, with food at home down 0.2% offsetting a 0.2% rise in food away from home.[2] Over the past year, consumer spending on goods and services grew 2.6%, slowing from 3.2% the prior year, with recent durable goods orders up 1.7% possibly tied to higher tariffs boosting domestic production.[5] Core CPI, excluding food and energy, rose 0.2% monthly and 2.6% annually, with transportation services up 4.1% and medical care services 3.7%.[1] These figures from the Bureau of Labor Statistics and Census Bureau underscore consumers' ability to sustain growth amid pressures.[1][2][6]