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

Winter night’s delight at festival this Friday

Annual Snowflake Festival at Kinsmen Beach January 18th

Hurtling down the world’s mountains

Invermere’s Ben Thomsen having a stellar ski season

Mountainfilm on Tour returns

Event runs two nights this year, Feb 8-9th

Students lobby for a rainbow crosswalk

Council agrees to proposal for painted crosswalk at 13th Ave. and 13th St. intersection

Home values rise in Columbia Valley

30% rise in Canal Flats; 10% in Invermere

Rare ‘super blood wolf moon’ takes to the skies this Sunday

Celestial event happens only three times this century

Fashion Fridays: Inspirational gym outfits

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

RCMP reveal new details 1 year after man’s remains found in burnt car near Trail

Jan. 14 marked one year since Jordan Workman was discovered in the trunk of a burnt car

Company issues lifetime ban after man jumps from cruise ship

Nick Naydev posted the video last week showing him standing on the balcony of the Symphony of the Seas

Parents in this B.C. city can no longer opt kids out of class for personal beliefs

Change comes as part of ‘big overhaul’ of school district’s learning resources policy approved by board

BC Hydro scammers bilked customers out of nearly $45,000 in 2018

Nearly 2,000 people reported scams to the utility, as they continue to be more common

Good news: Peak flu season over in B.C.

B.C. Centre for Disease Control says that while peak season is over, rates remain high this time of year

B.C. university students dumpster dive to shed light on food waste

Eating only from dumpsters, the students hope to raise money for food banks in Northern Canada

B.C. woman posts to Facebook after she and nephew reported missing for days

Roseanne Supernault says both she and her six-year-old nephew are fine and she has contacted police

Most Read