The Canadian Press

Canadians are again starting to pay more for most things they consume as the inflation rate jumped to 1% in November, the second straight month prices have risen sharply.

While higher gasoline prices were mostly to blame, Statistics Canada said the advance was broad-based. Prices rose in seven of eight major components tracked by the agency, and in all 10 provinces.

As well, the month-to-month index was higher with prices rising 0.5% from October.

The last two months have seen a complete reversal in the inflation story in Canada, which previously was one of falling prices and negative inflation.

But a rapid decline in gas prices from record highs in July 2008 has reversed the trend, the agency said.

“Prices at the pump are now exerting upward pressure on the Consumer Price Index after an extended period in which they were the main contributors to year-over-year declines in overall consumer prices,” the agency explained.

In November, gas prices were 14.1% higher than at the same time last year and 13.1% lower in October from the previous year.

Other components pushing prices higher were food, transportation, household operations, and furniture and equipment.

In addition, consumers paid 7.8% more for car insurance and 3.2% more for health and personal care.

Meanwhile, the cost of passenger vehicles fell 6%, and shelter costs declined 1.7% as natural gas prices were almost 30% lower this year than last. The mortgage interest costs were also well below last year by four%.

Overall, the trend of inflation is unlikely to worry the Bank of Canada as most price increases remain tame. Food, which had been a major driver of price increases, gained only 1.7% in November, the smallest increase since April 2008.

Core inflation, which the central bank closely tracks because it represents underlying inflation pressures, was actually lower in November at 1.5%, compared to 1.8% in October. That is still well below the central bank’s two-per-cent target.

Regionally, the largest increases in annual inflation occurred in New Brunswick, with a 2.2%. The rate rose 1.9% in Prince Edward Island, and by 1.7% in both Nova Scotia and Quebec.