Canadian retail sales increased by 0.5 per cent to $73 billion in April compared to the previous month. Retail sales were 3.7 per cent higher compared to the same time last year. However, core retail sales, which exclude gasoline and automobile items, decreased by 0.7 per cent in April. In volume terms, adjusted for rising prices, retail sales were largely unchanged in April.

Retail sales in British Columbia were up 1.0 per cent in April month-over-month and rose by 1.4 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 were 1.7 per cent below the level of April 2025.

April’s report marks the fourth consecutive month of retail sales growth, demonstrating consistent momentum in consumer spending that we hope translates into the labour market and broader economy over the summer. With discussions of a potential peace agreement in Iran underway, the Bank of Canada may shift focus towards the downside risks facing Canada over the coming months. That said, the volatility between both sides of the conflict warrants caution over the certainty of these discussions. Nonetheless, we expect the Bank of Canada to hold its policy rate at 2.25 per cent at its next meeting, as we remain hopeful for a strong GDP report for April following two quarters of negative growth.