June 8 (Reuters) - Canada's Dollarama Inc beat estimates for quarterly sales on Wednesday as surging inflation fueled demand for the discount store's groceries and household essentials.

The company's total sales rose to C$1.07 billion ($853.20 million) in the first quarter, from C$954.3 million a year earlier, beating analysts' average estimate of C$1.05 billion, according to IBES data from Refinitiv.

($1 = 1.2541 Canadian dollars) (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)