Canadians are becoming more cautious about spending as their mortgages come up for renewal at significantly higher interest rates. Retail sales declined by 0.1% in January, below the anticipated increase of 0.1%. Excluding automobiles, sales fell by 0.3%. The rapid growth of Canada’s population continues to inflate the numbers, with total sales still 2.2% lower than a year ago. Warm early-year weather may have also contributed to the sales, according to CIBC. The market currently anticipates a 49% likelihood of an interest rate reduction in June, indicating a close decision.