Inflation Is Driving Canadian Retail Sales Higher

As the Canadian economy emerges from pandemic-induced lockdowns, households have come out of hibernation and are shopping again. In June, Statistics Canada reported that retail sales increased by 1.1%, the sixth consecutive monthly increase. Sales were up in 8 of 11 sectors representing 76.8% of all retail trade. But while the increase in sales is encouraging, it is important to note that a good part of that growth is being driven by rising consumer prices.