Consumer spending steady despite global shocks

Irish retail volumes were 1.6% higher last month than in March 2025

Provisional CSO data for March showed the volume of retail sales increased by 0.2% in the month. Picture: Pexels

Retail sales in Ireland increased last month, despite higher fuel prices due to the US and Israeli war on Iran, statistics released by the Central Statistics Office (CSO) on Wednesday showed.

Provisional retail sales figures for March showed the volume of retail sales increased by 0.2% in the month. Sectors showing the highest monthly volume increases were electrical goods (+3.3%), and hardware, paints and glass (+3.0%). The largest monthly volume decreases were recorded in books, newspapers, and stationery (-4.2%), and bars (-2.7%).On an annual basis, retail volumes were 1.6% higher than in March 2025.

"On an annual basis, retail volumes were 1.6% higher than in March 2025," said CSO statistician Tommy Allen. 

The CSO also published data on Wednesday which showed  energy prices in Ireland have jumped 15.5% in the 12 months to April, as the conflict in the Middle East continues to impact prices here.

The geopolitical influence of higher oil prices was reflected in the fuel sector which experienced a 7.7% monthly value increase in March 2026 and was up by 10.5% compared with March 2025. "In volume terms, fuel remained relatively stable in March 2026 with monthly and annual increases of 0.1% and 1.4%, respectively. This divergence of value and volume reflects the inflation currently being experienced in the sector," said Mr Allen.

Colette Devey, EY Ireland consumer products and retail lead, said the CSO data points to a steady first quarter for the consumer spending, with retail sales volumes edging higher on both a monthly and annual basis, and values continuing to rise. "Excluding motor trades, underlying demand remains broadly stable, suggesting households are maintaining everyday spending despite ongoing cost pressures which is a positive signal," said Ms Devey.

"Beneath the headline numbers, however, higher energy prices are playing an increasingly important role which can be seen in the HICP figures. The divergence between value and volume in fuel and energy costs is particularly noticeable, highlighting how price inflation rather than increased consumption is driving recent movements.

"Consumers remain engaged but selective, prioritising essential purchases while managing the higher energy costs that for most households are non-negotiable. This only underscores how global conflict and geopolitical upheaval can have a direct impact on households and businesses, particularly in a small open, trade‑dependent economy like Ireland.”

The CSO said on Wednesday that overall inflation stands at 3.6% for the second consecutive month. The CSO said energy prices are estimated to have increased by 2.6% in the past month alone, likely to have been influenced by recent events in the Middle East.