According to the US Census Bureau, retail sales in April 2026 increased 0.5% month-over-month to $757.1 billion; the March gain was revised down to 1.6% from an initially reported 1.7%. On a year-over-year basis, retail sales rose 4.9%. However, since the figures are not adjusted for inflation, a significant portion of the increase reflects rising prices rather than higher volumes.
Gasoline prices surged 12.3% in April, serving as the primary driver of retail sales growth. The war with Iran, which began February 28, disrupted traffic through the Strait of Hormuz and squeezed global crude supplies, keeping fuel costs elevated even after a temporary ceasefire. The Consumer Price Index (CPI) rose 3.8% year-over-year in April, the highest level since May 2023 and up from 3.3% in March.
Core retail sales (excluding autos, gasoline, building materials, and food services) rose 0.5% in April after an upwardly revised 0.8% gain in March. This segment, which feeds directly into the consumer spending component of GDP calculations, offers a cleaner read on underlying demand. Winners included sporting goods retailers, e-commerce platforms, and electronics stores, with electronics and appliance store sales up 1.4% and nonstore (online) retailers rising 1.1%. In contrast, clothing stores fell 1.5%, furniture retailers dropped 2.0%, and auto dealerships declined 0.4%.
Consumer sentiment hit an all-time record low in early May, and inflation outpaced wage growth for the first time in three years, raising concerns that spending could slow considerably this year. However, IRS figures show the average tax refund check issued through April 25 ran $323 ahead of the comparable 2025 figure, providing a temporary buffer for consumers. The Federal Reserve held its benchmark rate at 3.50–3.75% at its April 28–29 FOMC meeting; with Fed Chair Jerome Powell's term ending, Kevin Warsh is expected to take the reins.
Note: This summary draws on SupplyChain247's publicly visible headline + subhead + opening paragraph and on sector background on US retail sales and inflation.
Key Takeaways:
1. US retail sales rose 0.5% MoM and 4.9% YoY in April 2026, totaling $757.1 billion
2. 12.3% surge in gasoline prices (due to Iran war and Strait of Hormuz disruption) was the primary driver
3. Core retail sales gained 0.5%, signaling resilience in underlying consumer demand
4. E-commerce and electronics stores were winners; furniture, clothing, and auto dealers declined
5. Inflation climbed to 3.8% (3-year high), consumer sentiment at record low; tax refunds provided temporary support
