American consumers kept spending in May, even as gas prices climbed to levels that would make most people wince at the pump. Retail sales rose 0.9% month-over-month to $763.7 billion, a figure that comfortably beat expectations and painted a picture of surprising economic resilience.

The data, released on June 17, also showed a 6.9% year-over-year increase compared to May 2025.

Gasoline did the heavy lifting, but not all of it

Here’s the thing about retail sales data: it doesn’t adjust for price changes. When gasoline costs more, gas station “sales” go up even if people are buying the same amount of fuel. Average regular motor gasoline prices surged 9.2% from April to May, hitting $4.48 per gallon. That spike is largely tied to geopolitical tensions in the Middle East, particularly escalating actions involving the US and Israel against Iran that have pressured global energy markets.

But gasoline stations weren’t the only category pulling the numbers higher. Other retail segments contributed to the broad-based increase, suggesting that even after stripping out the gas station effect, consumers were still willing to open their wallets.

Why consumers are still spending

Tax refunds typically work their way through household budgets in the spring months, giving spending a seasonal boost. Market gains have also contributed to a wealth effect, where rising portfolio values make people feel more comfortable spending. The combination has kept disposable income at levels that support spending across multiple categories, even as energy costs eat into budgets.

What this means for crypto and risk assets

Strong retail sales data driven partly by higher energy costs gives policymakers a complicated signal. The economy doesn’t need stimulus, but the inflation component is being driven by supply-side factors (geopolitics) rather than demand-side overheating.

No major tokens or protocols have been specifically linked to retail spending trends, which suggests digital asset markets are still largely trading on their own internal dynamics: ETF flows, protocol upgrades, regulatory developments.