Annual inflation accelerates to 2.1 per cent

Fuelled by gasoline prices, Canada’s annual inflation accelerates to 2.1 per cent

The country’s annual inflation rate accelerated to 2.1 per cent last month to reach its highest mark in nearly a year, Statistics Canada said Thursday.

The November inflation reading followed a 1.4 per cent increase in consumer prices in October. Last month’s increase was driven by higher costs for gasoline and air transportation, compared with a year earlier.

The result means the annual pace of inflation has now surpassed the Bank of Canada’s ideal target of two per cent following a two-year low of one per cent in June.

The central bank scrutinizes inflation data ahead of its interest-rate decisions. It’s scheduled to make an announcement next month.

Inflation has remained below two per cent for almost all of 2017 and the rate hasn’t been as high as 2.1 per cent since last January.

The report shows that pump prices delivered a major lift to last month’s overall inflation number after rising 19.6 per cent compared with the year before.

Related: U.S. tax cuts: Fiscal pros weigh in on how Canada should respond

Excluding gasoline, November’s inflation rate was 1.5 per cent, an increase from 1.3 per cent in October.

Two of the Bank of Canada’s three preferred measures of core inflation, designed to look through the noise of more-volatile items like gasoline, strengthened last month.

CPI-trim rose to 1.8 per cent from 1.5 per cent and CPI-median reached 1.9 per cent compared to 1.7 per cent in October, while CPI-common cooled to 1.5 per cent from 1.6 per cent.

By region, annual inflation was higher in every province last month with Manitoba, at 3.2 per cent, and Saskatchewan, at 3.7 per cent, seeing the biggest changes.

Statistics Canada also released data Thursday that showed retail sales expanded 1.5 per cent in October, thanks to a boost in new car sales.

Retail sales were up in every province, with higher numbers in Ontario, Quebec and B.C. accounting for the bulk of the increase, the agency said.

Related: Change to CPP death benefit panned as insufficient to cover funeral costs

The report showed that retail e-commerce sales increased 19.4 per cent in October, compared to a year earlier. However, it accounts for just 2.6 per cent of overall retail sales.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

BREAKING: Ammonia leak shuts down Nelson Curling Club

It’s not yet clear when the leak was detected

Four points for Fawcett as Leafs win 7th straight

Nelson edged the Fernie Ghostriders 4-3

What’s Up: Things to see and do on Family Day

There’s plenty of fun to be had across the West Kootenay this coming long weekend!

Seven Nelson rec projects granted Columbia Basin Trust funding

Nelson’s baseball and tennis clubs were the big winners

Sanchez leads Leafs to 6th straight win

Nelson held off Spokane 3-2 on Friday

B.C. students win Great Waters Challenge video contest

Video, mural and song about saving the salmon claims the top prize

Pavelski’s 31st goal helps Sharks top Canucks 3-2

Vancouver one point out of second NHL wild-card spot

East Kootenay illicit drug overdose deaths lowest in B.C.

Local expert credits harm reduction efforts; declares support for legalization of opioids

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Ontario police field complaints over Amber Alert for missing girl, 11, found dead

Some said the Amber Alert issued late Thursday for Riya Rajkumar disrupted their sleep

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

B.C. couple attacked with acid, slashed with knife in Vietnam

Warning, graphic images: Man has burns on 80 per cent of his body, slashed with knife

Northern B.C. First Nation clan says ancient tools found at pipeline work site

Archeologists from the Smithsonian Institute estimate one of the stones found dates back up to 3500 years

Names keep adding to vaccine petition started by B.C. mom

Maple Ridge mom started campaign to make vaccination a condition of attending school

Most Read