Statistics Canada says retail sales rose 2.2% to $62.2 billion in May, led higher by sales at new car dealers and gas stations.
The agency says the increase came as sales rose in eight of the 11 subsectors it tracks.
Higher prices helped lift sales at gasoline stations 9.2% in May, while sales at motor vehicle and parts dealers rose 3.3% boosted by a 3.8% gain at new car dealers.
Core retail sales—which exclude gasoline stations and motor vehicle and parts dealers—increased 0.6% for the month, boosted by higher sales at food and beverage stores.
In volume terms, retail sales rose 0.4% in May.
Statistics Canada says its preliminary estimate for June retail sales points to a gain of 0.3%, but cautioned the figure would be revised.