Canadian retail sales increased by 1.1 per cent to $70.7 billion in January compared to the previous month. Retail sales were 1.5 per cent higher compared to the same last year. Furthermore, core retail sales, which exclude gasoline and automobile items, increased by 0.9 per cent in January. In volume terms, adjusted for rising prices, retail sales were up 1.0 per cent in January.

Retail sales in British Columbia were up 0.2 per cent in January month-over-month and rose by 1.9 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were largely unchanged from the prior month and were 2.2 per cent above the level of January 2025.

January’s print marks a strong start to the year for retail activity as other aspects of the economy continue to struggle. Growth was found in six out of nine subsectors, resulting in one of the largest monthly increases in overall retail sales in recent months. After its fourth consecutive rate-hold on Wednesday, the Bank of Canada faces a quandary of balancing inflationary pressures from rising oil prices with a struggling labour market and economy. Ultimately, the Bank’s policy direction hinges on its perceived persistence of the supply shock from the US-Iran war, which, unfortunately, remains uncertain.