Alberta only province to see decline in retail sales

Alberta was the dark cloud in an otherwise sunny retail sales report from Statistics Canada on Friday.

In January, the province posted a 2.2 per cent decline in retail sales year-over-year and was the only jurisdiction to see an annual decline. According to StatsCan, retail sales in the province totalled $6.135 billion for the month, down about $140 million, and the lowest monthly total since August 2013. Sales were also off 0.2 per cent from December.

ATB Financial chief economist Todd Hirsch said slumping retail sales are “another discouraging sign of a weakening economy.”

“Sales may dip further yet as 2016 grinds on, but there is hope as well,” Hirsch wrote in a commentary Friday. “With crude oil prices rising in the last several days to above $US40 per barrel, Albertans may start feeling a bit more optimistic in the coming weeks and months.”

Nationally, retail numbers were strong, rising 6.4 per cent yearover-year to $44.2 billion — an increase of more than $2.6 billion,

The Canada-wide numbers were lifted by strong year-over-year gains in motor vehicle and parts (up 15.7 per cent), furniture (up 10.6 per cent) and building material and garden equipment and supplies (up 9.2 per cent).

Meanwhile, the national inflation rate cooled to 1.4 per cent in February, down from two per cent in January.

StatsCan said food was a key driver of inflation, with consumers paying 3.9 per cent more for food in February than they did in February 2015. Fresh produce contributed the most to food prices increases.

Alberta’s inflation rate matched the federal rate, at 1.4 per cent, down from 2.1 per cent in January.