08:50 AM EST, 01/23/2025 (MT Newswires) -- Canadian retail sales released on Thursday were flat in November, following a string of "solid" readings in prior months, said CIBC.

That matched the advance estimate for November, but things looked worse in the core group of sales, which excludes gasoline and autos, with sales in that group down by 1.0% month over month, and total sales volumes decreasing by 0.4% month over month, noted the bank.

However, the weakness likely reflected consumers delaying purchases until the tax holiday started in mid-December, as the advance estimate for December showed an impressive 1.6% month-over-month gain, suggesting a healthy pace of spending during the holiday period, stated CIBC.

Consumer spending has generally improved as interest rates have come down, and any threat to goods inflation remains minimal given "robust" inventory levels, according to the bank.