- Financial Survival Network
- Posts
- Worst “Rent” Inflation Since 1983 & Red-Hot Homeownership CPI Fuel Canada’s CPI Surge. Bank of Canada in a Pickle of its Own Making.
Worst “Rent” Inflation Since 1983 & Red-Hot Homeownership CPI Fuel Canada’s CPI Surge. Bank of Canada in a Pickle of its Own Making.
by Wolf Richter Wolf Street
Inflation dished up another nasty surprise. Other costs jumped too. Gasoline didn’t help. This was a broad-based mess.
In a nasty big surprise of the type that inflation, once it’s running loose, likes to dish out, the Consumer Price Index in Canada re-accelerated in August for the second month in a row, to 4.0% year-over-year, according to Statistics Canada today, up from 3.3% in July, and 2.8% in June (red line in the chart below). As everywhere, part of it was the jump in gasoline prices. But that’s just a convenient side story.
The scary part is the red-hot inflation in housing: Inflation in rents has been shooting up and raged at the highest rate since 1983; and inflation in homeownership costs also surged.