Fuelled by gasoline prices, 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 and signal that the stronger economy has started pushing up consumer prices.

Statistics Canada said Thursday that its inflation reading for November came in hotter than the 1.4 per cent number for October, boosted by higher costs for gasoline and air transportation, compared with a year earlier.

The result means the annual pace of inflation, which had slowed to a two-year low of one per cent in June, has now climbed above the Bank of Canada’s ideal target of two per cent. The central bank scrutinizes inflation data ahead of its interest-rate decisions - the next one is scheduled for Jan. 17.

Economists said the inflation reading reinforced their expectations that Bank of Canada governor Stephen Poloz will resume raising rates over the coming months. Canada’s national annual inflation rate was 2.1 per cent in November, Statistics Canada says. Here’s what happened in the provinces and territories (previous month in brackets):

• Newfoundland and Labrador: 2.0 per cent (0.9)

• Prince Edward Island:

• Nova Scotia: 1.8 (0.9)

• New Brunswick: 2.7 (1.5)

• Quebec: 1.7 (1.0)

• Ontario: 1.9 (1.3)

• Manitoba: 3.2 (1.5)

• Saskatchewan: 3.7 (2.0)

• Alberta: 2.5 (1.3)

• British Columbia: 2.6 (2.0)

• Whitehorse, Yukon: 2.3 (1.0)

• Yellowknife, N.W.T.: 1.4 (0.5)

Some also noted the robust economy showed further progress in a separate Statistics Canada report Thursday on retail trade. It said retail sales in October expanded by a healthy 1.5 per cent, thanks in large part to a boost in new car sales.

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