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

Defending champions Team Scheidegger will fight to keep title

Stettler hosting 2019 Alberta Scotties provincial women’s bonspiel

WATCH: World-renowned illusionist, magician, escapist performs in Stettler

Matt Johnson performs two sold-out shows at Stettler Performing Arts Centre

Big Valley’s Harden family gives back

Donates $24,560 to Stettler Health Foundation and Edmonton Stollery Children’s Hospital

Trudeau says politicians shouldn’t prey on Canadians’ fears

The Prime Minister was speaking at a townhall in Ontario

New market opens in downtown Ponoka

Makkinga Market had a soft opening showcasing many of the different foods in store

UPDATE: B.C. boy, aunt missing for three days

The pair are missing from Kamloops

Liberal bows out of byelection after singling out Jagmeet Singh’s race

Karen Wang says she made comments online that referenced Singh’s cultural background

John Savage pleads guilty to manslaughter

Sentenced to 7 years for Stettler murder

Kentucky canoe outfit borrows photo of Trudeau family to market business

They are in a red canoe, all clad in life jackets, and Sophie Gregoire Trudeau and Ella-Grace are waving

UPDATED UCP MLA cries foul after brick thrown through office window

UPDATED St. Paul MLA Dave Hanson says ‘Over-the-top NDP rhetoric’ not based in reality

Theresa May wins no-confidence vote after Brexit deal rejection

UK PM can keep her job, after House of Commons voted 325-306

Alberta doctor accused of sexual assault asked to voluntarily give up practice

College says Dr. Barry Wollach should discontinue his practice, given the seriousness of the allegation against him

Most Read