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Nonetheless, economists noted a gradual uptick in the pace of inflation this year that they said would need eventually to be arrested -- even though it largely results from higher prices for a volatile item like gasoline.
To keep the comparison between its index and the government's CPI fair, PNC excludes the cost of the swans, typically the most volatile item in the list (the government similarly excludes energy and food prices).
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Core inflation, which strips out volatile items such as food and energy, rose from 0.8%to1.2%2%.
Stripped of oil and other volatile items, the core inflation rate is 1.3percentt.
Annual inflation is 1.5%, but it is 2.5% when volatile items are excluded.
Core inflation (which strips out volatile items) rose to 2.2%, another sign that inflationary pressure are building.
Core retail sales (stripping out volatile items like food and gasoline) fell by 1.7% - following a 1% surge in November.
Core inflation, which excludes volatile items like gasoline and is considered the best gage of underlying price trends, is expected to bottom at 1.1percentt in the fourth quarter.
Even so, Mr. Dunigan said that its Christmas core index — which eliminates volatile items like swans — mirrors the federal Consumer Price Index.
Excluding food, energy and other volatile items, the core rate rose 2.4percentt in July, within the Bank of Canada's range of 1percentto3percentcent.
But core inflation, which strips out volatile items including energy and food, fell to 0.7% in October from 0.8% in September.
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