By Fergal Smith

(Reuters) -Canada's main stock index clawed back some earlier declines to end higher on Tuesday, led by financial and gold-mining shares, as investors weighed hotter-than-expected domestic inflation data as well as escalating tensions between Russia and Ukraine.

The Toronto Stock Exchange's S&P/TSX composite index ended up 33.83 points, or 0.1%, at 25,010.77, moving closer to the record closing high it notched last Thursday.

"There are some positive narratives that are developing with the inflation print that we had and the fact that maybe there is no real need to have an accelerated rate cut cycle here as well," said Sid Mokhtari, chief market technician for CIBC Capital Markets.

"That is buoying some of the financials which are a big part of the TSX index," Mokhtari said, adding that financials could benefit from a steeper yield curve and expected looser business regulations in the United States.

Canada's annual inflation rate climbed to 2% in October, spurring investors to reduce bets on an outsized interest rate cut by the Bank of Canada next month.

The financials sector, which accounts for 31% of the TSX's weighting, rose 0.2%, adding to its recent gains.

The materials group, which includes fertilizer companies and metal mining shares, was up 1.7% as gold benefited from a safe-haven bid after Ukraine used U.S. ATACMS missiles to strike Russian territory.

Oil also gained ground, settling 0.3% higher at $69.39 a barrel. But energy was down 0.3%, with TC Energy falling 0.5% as investors weighed the company's 2025 core profit forecast.

Still, the sector has advanced about 11% since September.

"If we can see the energy sector being able to rebuild itself ... that's going to keep the TSX better buoyed as we go into year-end," Mokhtari said.

The consumer staples sector also ended lower on Tuesday, falling 1.1%.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Sriraj Kalluvila and Alistair Bell)