Canada Retail Sales Likely Jumped in December on Tax Break (1)

Canadian consumers appear to have embraced falling interest rates and ended the holiday season with the strongest spending in nearly two years.

An advance estimate suggests receipts for retailers jumped 1.6% in December, Statistics Canada reported Thursday. That would be the highest monthly pace since January 2023.

The figure points to momentum in consumption as rate cuts and slowing price gains buoyed spending. Prime Minister Justin Trudeau’s federal sales tax holiday on a number of items including restaurant meals, some alcohol and toys, which started Dec. 14, also likely boosted consumption.

The statistics agency didn’t provide details for the ...