Retail sales in Alberta rise above late 2014 levels

Retail spending in Alberta surpassed pre-recession highs for the first time in May, as shoppers rang up $6.81 billion in sales.

It’s the highest monthly total since October 2014, but still $157 million below previous highs after accounting for inflation, according to ATB Financial.

“The fact that retail sales in the province have increased in nine out of the last 10 months is welcome news for retailers and another sign that the recession of 2015/16 is in the rear-view mirror,” the bank said in a commentary.

“We may, however, still see some pullback in retail spending as the year progresses if the unemployment rate remains high.”

After a 0.4 per cent decline in March, retail sales in Alberta grew 1.6 per cent from April, Statistics Canada reported Friday.

Nationally, sales increased for a third consecutive month in May, by 0.6 per cent to a record $48.9 billion, paced by a 2.4 per cent gain at motor vehicle and parts dealers.

Alberta continued to outspend all provinces on a per-capita basis, according to ATB.

In a separate report, Statistics Canada said the annual pace of inflation in June fell to its weakest rate in almost two years.

Overall, the agency’s latest inflation report showed prices were just 1 per cent higher last month compared to a year earlier.

The June number followed infla- tion readings of 1.3 per cent in May and 1.6 per cent in April.

In Alberta, the CPI increased 0.4 per cent from June 2016, following a 1.2 per cent increase in May.

The latest deceleration in inflation has moved the rate even further away from the Bank of Canada’s target of two per cent. It’s been dropping since February — the last time it posted a two per cent reading.