Statistics Canada's flash estimate pointed to an increase of 0.6% in retail sales for April, which in light of a 0.7% rise in goods prices over the month implies that volumes fell slightly, noted Oskar Stone over at Desjardins following the release of the latest retail sales data.
"Our view that policymakers should remain on the sidelines has been marginally strengthened following this print given the weakness in both core retail sales, and the April flash," said Stone.
"Looking ahead, elevated gasoline prices could chew up even more of household finances, further restraining spending in other categories and possibly offsetting the gains from higher oil prices from other parts in the economy," he added.
Stone noted retail sales rose 0.9% in March, but all of the increase was driven by gasoline prices. Excluding gas and autos, sales fell 0.1%. Higher prices accounted for more than all of the gains in nominal headline sales, with volumes down 0.7% Only four of the nine subsectors rose, further highlighting the pressure on Canadian consumers from higher gas prices.