CHB - Inflation Retreating But Shelter Remains The Problem
2024-02-21 10:20:00 ET
Summary
- Canada’s January CPI report came in softer than expected at an annualized rate of 2.9%.
- The share of CPI components inflating more than 5% year-over-year fell to 24% from 68% at the cycle peak in 2022.
- While other essentials like groceries and transportation costs show more subdued inflation, shelter costs are stubborn, rising 6.2% year-over-year.
- The main driver of shelter inflation was mortgage interest costs (+27.4%) - the fastest-rising element of CPI.
- Outstanding debt weighs heavy, and what cannot be refinanced or repaid is ultimately written down over time as collateral gets liquidated.
Canada’s January Consumer Price Index ((CPI)) report came in softer than expected at an annualized rate of 2.9%, down from 3.4% in December and 8.1% from the cycle peak in June 2022....
Inflation Retreating But Shelter Remains The Problem