Quote:
Originally Posted by Slava
Well it's tricky though, because the rate hikes have also increased shelter costs, which is a factor in that inflation print. I think that is ~0.5 of that figure.
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Even higher, actually. Because mortgage interest inflation is almost 29% year over year, it adds about 0.9 percentage points to the headline inflation number on its own. And it adds even more to the core inflation number, because its basket weight is relatively bigger after excluding food and energy. So actual supply/demand driven inflation is a fair bit lower than the headline/core numbers.
And as for April's number, the biggest factors driving the month-over-month increase are either a side effect of rate increases (mortgage interest) or largely seasonal (gas prices, RVs/outboard motors, electricity prices rising due to April's carbon tax increase, etc.). It still looks like we'll be in the 3-3.5% range by summer, with all time high mortgage interest inflation being what keeps it above the target range.