Canadian retail sales climbed 1.0% to C$73.7 billion in May, driven primarily by a sharp increase in prices at gasoline stations and fuel vendors.
Statistics Canada reported that sales at fuel outlets grew 3.1% for the month, marking the largest sectoral increase in the retail data.
However, this revenue growth occurred despite a decline in actual fuel volumes sold, indicating that the uplift was entirely price-driven rather than demand-led.
The divergence between price and volume in the fuel sector underscores the persistent inflationary pressure on Canadian consumers.
As energy costs remain elevated, households are spending more on essential transportation fuels without increasing consumption.
This dynamic contributes to the broader cost-of-living squeeze, with fuel expenses acting as a direct drag on disposable income for other retail categories.