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

$11 million overdraw for McKenzie Interchange construction

The project has been delayed multiple times and is now estimating a budget of $96 million

French Open at Bear Mountain serves a winner

The US Open is scheduled for Sept. 3 to 8 on the hardcourts at Henderson Park in Oak Bay

Union Club of B.C. votes in its first female president

16-year member Grace Van den Brink previously served as vice president

Alzheimer Society calls for helpline volunteers in Greater Victoria

Charity is in ‘urgent need’ as calls on the rise

Saanich jam stand at the centre of controversy prepares to close

Staff review of roadside stand legislation too late for Little

VIDEO: Trans Mountain expansion project gets green light, again

Prime Minister Justin Trudeau announced the decision in Ottawa on Tuesday afternoon

POLL: Do you support the government’s decision to approve the Trans Mountain pipeline expansion?

The federal government announced Tuesday its approval for the Trans Mountain pipeline… Continue reading

Greater Victoria wanted list for the week of June 18

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

MPs hear retired B.C. nurse’s petition to change compensation for fatal medical errors

Teri McGrath wants provinces to implement no-fault system for medical errors

Horgan says he’ll still defend B.C. coast after second Trans Mountain approval

Meanwhile, one B.C. First Nation has announced plans for a legal challenge

VIDEO: Firefighters stop blaze from spreading after BMW crashes at Saratoga Speedway

Victoria-based businessmen were ‘corner training’ on Father’s Day when incident took place

Demonstrators on either side of Trans Mountain debate clash in Vancouver

Crowd heard from member of Indigenous-led coalition that hopes to buy 51% of expansion project

Grieving B.C. mom hopes Facebook message leads to new investigation into son’s Surrey homicide

Criminal Justice Branch didn’t lay charges, concluding no substantial likelihood of murder or manslaughter conviction

Ginger Goodwin’s Cumberland cemetery grave desecrated

Just days before the Miners Memorial weekend, Ginger Goodwin’s grave has been… Continue reading

Most Read