A new home is displayed for sale in a housing development in Ottawa on Tuesday, July 14, 2020. Statistics Canada says the first increase in annual inflation since its June 2022 peak was driven by higher mortgage interest costs.THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA – Statistics Canada says the first increase in annual inflation since its June 2022 peak was driven in part by higher mortgage interest costs and higher rent prices.
Mortgage interest costs were up 28.5 per cent in April compared with a year ago as a result of the Bank of Canada raising interest rates at a breakneck pace over the past year.
Meanwhile, inflation for rent was 6.1 per cent year over year, up from 5.3 per cent in April.
That’s despite overall shelter costs rising at a slower pace in April, at 4.9 per cent.
The year-over-year increase in the homeowners’ replacement cost index also slowed for the 12th consecutive month, which Statistics Canada says reflects a general cooling of the housing market.
A report by RBC Economics says shelter was the largest contributor to headline inflation in April, accounting for a third of the growth.
This report by The Canadian Press was first published May 16, 2023.
