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

Snapshot: Shuswap musicians pay tribute to Pete Seeger

Wildwood Productions Group concert shows many sides of singer’s work

Rain on the way for the Okanagan-Shuswap

Vernon’s dust warning is ongoing

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Update: Highway 3 reopened following rockslide near Keremeos

The slide occurred Friday March 22, at about 8 p.m. between Red Bridge and Standing Rock

Active burn pile prompts firefighter response in Salmon Arm

Reports of residential fire, thick smoke was from burning construction material

Sparks fly as SUV speeds down wrong side of Highway 1 trying to flee RCMP

Captured on video, the vehicle headed westbound against oncoming traffic before crashing

Kootnekoff: R v. Sidhu, was he asleep?

Driver in Humboldt crash wasn’t distracted at time of collision with bus,… Continue reading

Trudeau calls May 6 byelection for B.C. riding of Nanaimo-Ladysmith

The riding opened up when Sheila Malcolmson resigned in January

B.C. VIEWS: The hijacking of our education system gathers speed

Children taught to strike and shout fringe far-left demands

Judges on Twitter? Ethical guidance for those on the bench under review

Canadian judges involvement in community life are among issues under review

Four people displaced by Taylor Road fire

The Kelowna Fire Department say no one wass injured and the cause of the fire is not suspicious

Calgary captain has 3 points as Flames torch Canucks 3-1

Giordano leads way as Alberta side cracks 100-point plateau

Okanagan woman launches sewing studio

“I know there’s a lot of people up and down the valley that would love to sew.”

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

Most Read