Higher rent, mortgage interest drove inflation up in April

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Higher rent, mortgage interest drove inflation up in April
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The first increase in annual inflation since its peak in June 2022 was driven in part by higher mortgage interest costs and rent prices, Statistics Canada says

OTTAWA — The first increase in annual inflation since its June 2022 peak was driven in part by higher mortgage interest costs and higher rent prices, Statistics Canada said Tuesday.

Mortgage payments have spiked as Canadians are forced to renew mortgages at current high interest rates, he said. According to Rentals.ca, average advertised rental prices in April were up 20 per cent from pandemic lows in April 2021. Average rents across Canada were up 9.6 per cent compared with April 2022.

The Bank of Canada has been aggressively hiking interest rates in order to tame high inflation. Yet, in a paradoxical twist, higher interest rates have pushed up housing costs, contributing to higher inflation this month.

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