UK Retail Sales +0.7% on Fuel Surge, Core Weakness Tempers UK 100 Boost

UK March retail sales surged 0.7% month-on-month, far exceeding 0.1% expectations and reversing a revised -0.6% February drop, with Q1 volumes up 1.6% quarter-on-quarter, per ONS data on 24 April 2026. The rebound was fueled by automotive fuel stockpiling amid rising prices, while sales excluding fuel rose a modest 0.2% m/m and annual growth hit 1.7% y/y versus 1.3% forecast. This follows in-line March CPI at +3.3% y/y on 22 April, with slightly softer core at +3.1% versus +3.2% expected. The mixed print signals patchy consumer strength, potentially supporting UK 100 equities short-term but limiting upside amid BoE policy scrutiny.