Canada retail sales rise as fuel and pharmaceutical categories lead August gains

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Canada retail sales August gains

Highlights

Canada retail sales reached $76.3 billion in August, rising 4.5% year-over-year with gains in 15 of 18 commodity classes.
Sales of automotive and household fuels surged 25.1% and home health products rose 12.8%, led by a 13.9% increase in pharmaceuticals.
The September advance estimate shows unadjusted total retail sales up 8.1% year-over-year, indicating accelerating retail momentum.

August commodity growth reflects fuel and health spending

As reported by Statistics Canada, retail sales reached $76.3 billion in August, up 4.5% from the same month a year earlier, with higher sales reported in 15 of 18 commodity classes.

The largest increase in dollar terms comes from sales of automotive and household fuels, which rise 25.1%. Automotive fuels alone increase 24.5% from August 2025, as higher prices at the pump lift sales values.

Home health products also post strong growth, rising 12.8% in August. Statistics Canada says this gain is driven by pharmaceuticals, up 13.9%, with prescription pharmaceuticals recording the biggest increase within the category at 15.2%.

Retail sales of motor vehicles grow 3.5% in August. New motor vehicles lead that category with a 7.4% increase, while used motor vehicle sales fall 2.1% from the same month in 2025.

September estimate points to stronger retail momentum

The advance estimate from the Monthly Retail Trade Survey suggests unadjusted total retail sales in September increase 8.1%. Statistics Canada notes that the figure is preliminary and will be revised.

The agency says the Retail Commodity Survey collects national retail sales data by commodity from the same businesses covered in the Monthly Retail Trade Survey, and that the figures are not seasonally adjusted. All percentage changes in the release are measured on a year-over-year basis.

Statistics Canada also notes that, from the January 2023 reference period, the survey has used the 2022 North American Product Classification System and North American Industry Classification System structures. The updated framework introduces new commodities, revises definitions and broadens the industry scope used for the estimates.

Our earlier article on the spike in crude oil shipping costs explained how conflict-driven risks on major tanker routes have sent freight and insurance rates sharply higher, making transportation a much larger share of the final oil price. We noted that these elevated logistics costs can filter through to higher prices at the pump and broader consumer inflation, with import-dependent markets facing the strongest impact.

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