Canadian retail sales rose 1.4% in October, but may have fallen 0.5% in November

It is noted that retail sales in Canada for October increased by 1.4% compared to September. The figure is lower than analysts' forecasts, which is an increase of 1.5%. However, it is the largest growth in the last 5 months. According to estimated data, November sales may have fallen by 0.5%.

Shelly Kaushik, an economist at BMO Capital Markets, sees the reason for the October increase in prices, especially at gas stations. In volume terms, she believes, retail sales remained the same.

She also added that because of the inflation’s high rate, consumers have to exist in a condition of reduced purchasing power. This, in her opinion, is the main reason for the low preliminary figures for November. 

The final consumer price data will be available on Wednesday, and the GDP data will be released on Friday.

Royce Mendes, an economist at Desjardins Group, believes the retail sales figures are fully justified by a halt in rate hikes (the Bank of Canada will suspend interest rate hikes starting from January). However, the future still depends on the Consumer Price Index data.