* TSX up 0.8%

* November CPI at 3.1% YoY vs 2.9% estimate

* Boyd Group Services up on CIBC upgrade

Dec 19 (Reuters) - Canada's main stock index rose on Tuesday despite a sticky domestic inflation reading, as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates next year.

At 9:43 a.m. ET (1443 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 154.48 points, or 0.75%, at 20,777.19. Wall Street, too, had an upbeat start to the session.

The materials sector, which houses Canada's major mining firms, gained 1.3% with copper miners amongst the top gainers on the benchmark index as prices of the red metal rose.

Consumer staple was amongst the leading sectors, rising 1.2%, while utilities advanced 0.8%.

San Francisco Fed President Mary Daly said cuts to the U.S. central bank's benchmark rate are likely to be appropriate next year, the Wall Street Journal reported.

Fed Atlanta President Raphael Bostic and Fed Chicago President Austan Goolsbee are also scheduled to speak later in the day.

Meanwhile, the loonie strengthened 0.5% against the dollar after data showed Canada's annual inflation rate unexpectedly remained at 3.1% in November.

"The renewed acceleration in core inflation pressures in November was partly due to a jump in travel tour prices, which is likely to be reversed in December," said Stephen Brown, deputy chief North America economist at Capital Economics.

"Nonetheless, by highlighting the continued uncertainty of how long it will take for core inflation to return to 2%, the move still reduces the chance that the Bank will cut interest rates as soon as we forecast in March."

Data showed U.S. single-family homebuilding surged in November.

Investors are looking ahead to the domestic and U.S. GDP readings, U.S. consumer confidence and November personal consumption expenditure index (PCE) due later in the week.

Among individual stocks, Boyd Group Services gained 1.4% after CIBC upgraded its rating to "outperformer" from "neutral". (Reporting by Shashwat Chauhan in Bengaluru; Editing by Tasim Zahid and Shweta Agarwal)