Booze and groceries prop up Canada’s fragile retail rebound

He noted that Canada has “the highest food inflation in the G7 by a lot” and said that with food prices “up over seven per cent year over year” and sales “basically flat when you take out booze sales,” the economy is not growing for consumers even as the prices they pay keep rising. 

He warned this shows “the possibility of stagflation” and “doesn’t portend well for the average Canadian consumer, who is hurting.” 

He also described “a K-shaped economy where the well-to-do — and the boomers, I’m one — are doing well, whereas younger people are struggling to get jobs, struggling to pay for rent, homes and food,” contrasting this with a US economy he said is “doing better and projected to do better.” 

Beyond food and alcohol, Statistics Canada reported that health and personal care retailers saw sales rise 1.6 percent, while clothing, clothing accessories, shoes, jewellery, luggage and leather goods retailers increased 2.4 percent, led by a 2.7 percent gain at clothing and clothing accessories retailers. 

Building material and garden equipment and supplies dealers rose 2.1 percent.