i think you should tell him that if he ever says or does anything like this again you will report him for sexual harassment. hopefully, that will shut him up. then, ignore and avoid him and if he does do anything again after warning him then definitely tell your boss and report him. don't make an empty threat to report him though. you have to follow thru. personally, i'd just go ahead and report him now.

if you like your job otherwise then i think it would be better to deal with this than to run away. what nf said is very true. he will continue to do this if he isn't stopped. he needs to know this isn't acceptable behavior. i am really sorry you are the one who has to deal with this but yeah better you than some poor girl who doesn't have any boundaries at all and gets molested.