US retail sales picked up in March, helped by a surge in gas station receipts that masked mixed results in other large spending categories as consumers contend with decades-high inflation.

The value of overall retail purchases climbed 0.5pc, Commerce Department figures showed Thursday. While that was just shy of expectations, the prior month was revised up sharply to show a 0.8pc increase.

The March advance was led by an 8.9pc jump in spending on gasoline. Excluding receipts at gas stations, sales fell 0.3pc last month as vehicle and e-commerce purchases – the two-largest spending categories – declined. The figures aren’t adjusted for inflation.

“In some discretionary categories, such as apparel and restaurant spending, the rise in nominal sales outstripped inflation and suggested that the easing in pandemic-related restrictions is helping consumer spending, while in other components it was clear that inflation played a large role in boosting spending,” Omair Sharif, founder of Inflation Insights, said in a note.

After the largest monthly percentage increase in average gasoline prices in six years, along with rising food and shelter costs, Americans have tougher spending choices to make beyond essentials.

Russia’s war in Ukraine is driving up costs for energy and commodities, adding to rampant inflation that’s crumbling purchasing power.

There are other signs that that’s already happening. Retailers like Bed Bath & Beyond blamed slowing sales on inflation that’s hurting consumer confidence, and Avery’s very chain Albertsons is bracing for less spending by lower-income customers as food prices surge.