Canadian retail sales rose by 0.7% in November, driven by rising gasoline prices and a recovery in sales at general merchandise stores, Statistics Canada said today.

The November sales rise topped the expectations of economists, who had been looking for a boost of 0.2%.

The November increase was the third monthly rise in four, as sales came in at $34.76 billion. October’s sales were $34.54 billion.

A 4% rise in gasoline prices was a major factor in November’s sales. After taking price changes into account, overall retail sales rose 0.2% when measured in terms of constant dollars.

Sales in the automotive sector rose 0.6% for November, as a result of a 7.7% increase in gasoline station sales. Higher gasoline prices boosted the sales value reported by gasoline stations in November.

The sharp jump in gasoline station sales represents almost two-thirds of the 1.7% increase in retail sales — when sales by new car dealers and used and recreational motor vehicles and parts dealers are all omitted, StatsCan said.

The government agency said strong gains were recorded in sectors traditionally associated with Christmas shopping, such as general merchandise stores, where sales were up 2.3%. Sales in this class of stores had fallen by 1.6% in October.

Sales at furniture, home furnishings and electronics stores grew by 1.4% in November, while sales at clothing and accessories stores gained 1.2%.