Fuelled by gasoline prices, annual inflation accelerates to 2.1 per cent

The Canadian Press</span>
Published Thursday, December 21, 2017 8:38AM EST
Last Updated Thursday, December 21, 2017 8:48AM EST

OTTAWA -- The country's annual inflation rate accelerated to 2.1 per cent last month to reach its highest mark in nearly a year.

The November inflation reading followed a 1.4 per cent increase in consumer prices in October.

Statistics Canada says inflation was driven last month 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 and is 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.

Statistics Canada also released data that showed retail sales expanded 1.5 per cent in October, thanks to a boost in new car sales.

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