Canadian retail sales fell 0.6% to $34.2 billion in July, Statistics Canada said Tuesday.

Economists had forecast a 0.7% monthly increase.

Most of the decline reflected lower prices at gasoline stations, StatsCan said.

Overall, sales were down in five of eight retail sectors in July.

In the automotive sector, the 1% decline in sales was due to a 3.4% fall in sales at gasoline stations as prices at the pump dropped. “This was the third time in four months where sales at gasoline stations have been the largest contributor to the change in overall retail sales, reflecting swings in prices,” the agency said.

Sales at supermarkets declined 1.6% and sales at liquor stores fell 1.4%.

The largest increase was a 1.1% rise in sales at pharmacies and personal care stores.

In volume terms, sales edged down 0.1%.

Retail sales declined in all provinces in July, reflecting the impact of price-induced lower sales at gasoline stations.

IE