Here’s where Canadians are spending less amid high inflation, interest rates - National | Globalnews.ca

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Here’s where Canadians are spending less amid high inflation, interest rates - National | Globalnews.ca
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Here’s where Canadians are spending less amid high inflation, interest rates

“This sluggishness in spending should help keep goods price inflation under control , allowing the Bank of Canada to stay on hold for the remainder of this year before gradual cuts start early in 2024,” Grantham said.

The annual rate of inflation in Canada dropped to 4.3 per cent in March, but grocery prices climbed 9.7 per cent on a year-over-year basis, Statistics Canada said Tuesday. For February, retail sales were down in four of the nine subsectors as sales at gasoline stations and fuel vendors fell 5.0 per cent for the month and general merchandise retailers lost 1.6 per cent.Meanwhile, sales at motor vehicle and parts dealers rose 0.9 per cent in February.

Core retail sales – which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers – increased 0.1 per cent helped by a 4.4 per cent gain in sales at clothing, clothing accessories, shoes, jewelry, luggage and leather goods retailers.“Consumers are picking are choosing where they cut spending,” Winder said. “More companies are quietly nudging workers back into the office, so that could be helping spending in some areas.

In volume terms, a measure that adjusts for the impact of inflation, overall retail sales fell 0.7 per cent in February.

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