Canadian retail sales increased by 1.0 per cent to $73.7 billion in May compared to the previous month. Retail sales were 5.9 per cent higher compared to the same time last year. Moreover, core retail sales, which exclude gasoline and automobile items, increased by 0.9 per cent in May. In volume terms, adjusted for rising prices, retail sales rose by 0.3 per cent in May.

Retail sales in British Columbia were up 2.1 per cent in May month-over-month and rose by 3.4 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were up 3.4 per cent from the prior month and were 1.6 per cent above the level of May 2025. 

May’s report illustrates the resilience of Canadian consumer spending throughout the past few quarters, with retail sales growing for a fifth consecutive month despite global and domestic economic turbulence. Looking forward, the Bank of Canada will monitor next week’s GDP report in hopes of a strong rebound in the second quarter.  Unfortunately, America’s newly threatened tariffs on Canadian exports adds complication to the trajectory of monetary policy. Furthermore, the temporary ceasefire of the Iran conflict has been breached through resumed attacks, causing oil prices to spike over the past two weeks. Facing persistent volatility concerning trade and global oil markets, we expect the Bank of Canada to continue anchoring expectations by holding its policy rate at 2.25 per cent the rest of this year. Nonetheless, the Bank remains ready to alter course depending on how the Iran conflict and these new tariff threats evolve and affect our economy.