Canadian retail sales decreased by 0.6 per cent to $69.4 billion in January from the previous month. Compared to the same time last year, retail sales are up by 4.2 per cent. Furthermore, core retail sales, which exclude gasoline and automobile items, fell by 0.2 per cent month-over-month. In volume terms, adjusted for rising prices, retail sales decreased by 1.1 per cent in January. 

Retail sales in British Columbia were up 0.5 per cent in January month-over-month and rose by 5.9 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were up 0.8 per cent from the prior month, and increased by 5.2 per cent from January 2024.

Tailwinds from the GST/HST tax holiday weren't enough to continue previous gains in retail activity in January. However, in British Columbia, the tax break has fed into a broader upward trend in retail activity over the past few quarters.  After last week's CPI report, markets continue to expect a hold from the Bank of Canada during its next meeting.

Copyright British Columbia Real Estate Association. Reprinted with permission.