08:49 AM EDT, 03/20/2026 (MT Newswires) -- Canadian retail sales appear to be starting the year on a "solid" footing, said CIBC after Friday's data.

Headline sales rose by 1.1% month over month in January, with core sales -- excluding autos and gasoline -- and overall volumes increasing by 0.9% month over month and 1.0% month over month, respectively.

While the headline gain was a little weaker than the advance and consensus estimate of 1.5% month over month, early data for February point to a further 0.9% increase in that month as well, suggesting that goods consumption will be a solid positive contributor to Q1 gross domestic product, noted CIBC.

For January, general merchandise and sporting goods stores saw the largest increases in sales.

Looking forward, the recent jump in gasoline prices will flatter the headline nominal retail sales figures in the coming months, however, the squeeze to disposable incomes is likely to restrict purchases of other products and subdue overall sales volumes, stated the bank.