Panic at the pumps fuels sales boost, according to ONS
Motorists have been stockpiling fuel as war in the Middle East pushes up prices at the pumps and sparks fears of shortages.
Drivers filling up more often fuelled a 0.7 per cent surge in retail sales in March, according to the Office for National Statistics (ONS).
The volume of fuel bought rose 6.1 per cent. Without this, retail sales were only 0.2 per cent higher, having slumped 0.6 per cent in February.
Many retailers said the war had triggered the rush for fuel.
Fears: Motorists have been stockpiling fuel as war in the Middle East pushes up prices
Wealth Club strategist Susannah Streeter said: ‘There was panic at the pumps as escalating prices saw motorists race to fill up their tanks to try to save cash and build reserves in case of shortages.’
Phil Monkhouse, at financial services firm Ebury, said: ‘Excluding fuel, March’s retail sales show a modest lift in activity, with Easter holidays and better weather giving spending a short-term boost. However, it looks like this mild rebound may be short-lived.
‘Inflation is ticking up again and with some economists pricing in Bank of England rate hikes, consumers are tightening their belts.
‘Higher borrowing costs and rising bills are eating into disposable income, while UK consumer confidence has been knocked by the Middle East, clouding the outlook for consumer spending and future sales growth.’
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