Experts say national statistics data only slightly dents the odds of the Bank of Canada cutting its key interest rate this year.
Ontario and Quebec contributed the most to growth that was ahead of the 2019 inflation rate of 1.95%.
Gasoline prices were up 0.9% year-over-year compared with a drop 6.7% in October.
Prices rose in all eight of the index’s major components compared with a year ago.
The bank is now projecting growth to be just 1.7 per cent in 2019.
The rate remains at 1.75 per cent; the BoC has been on a gradual rate-hiking path.
Foresees four rate hikes this year, up from the three it had previously forecast.
Next scheduled rate decision set for July 11.
Statistics Canada says core measure above 2% for first time in six years.
What really matters is that inflation averages out over a multi-year period around that benchmark.
Bank says some US proposals would have “material consequences” for Canadian investment and exports.
StatsCan said the 6.3% increase in transportation costs was the main contributor to the higher rate.
Bank of Canada says it will stop using its current preferred measure of core inflation.
Concern follows news that the economy contracted at an annual pace of 1.6% in Q2.
Higher energy, vehicle prices are offset by offset by cheaper gasoline, fuel oil and natural gas.