For the first time in almost a year, Canada’s inflation rate moved higher. According to Statistics Canada things like monthly rent and mortgage payments are to blame for the jump.
The consumer price index peaked at a 40 year high of 8.1 per cent in June of 2022. That was followed by a steady decline, until last month, when there was a slight rise to 4.4 per cent from March.
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Associate professor of economic analysis at the Rotman School of Management, Walid Hejazi says, “…People are spending a lot more to pay for their housing and that’s one of the biggest pieces in the increase in inflation.”
Hejazi thinks it will be unlikely that the Bank of Canada or the federal reserve will increase mortgage rates and that “…most economists believe they’re not gonna rush back to raise rates, they are going wait a few more reports to see if more rate hikes are needed.”
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Even though we saw a slight uptick in April, Hejazi says it’s too early to call it a trend just yet, perhaps just a blip.
