Canada's bonkers rent prices are now the main driver of our skyrocketing cost of living
Inflation is continuing to hammer the wallets of Canadians as our lengthy cost of living crisis wages on, but it is no longer gas and grocery prices causing the most damage.
According to the latest Consumer Price Index from Statistics Canada, the 4% increase in the cost of consumer goods this August versus last is led by higher energy prices and higher rent and mortgage payments.
Out of all the categories of goods and services measured, the jump in what people have to pay for shelter is the most significant year-over-year, along with transportation costs, due to the fact that gas saw its first yearly increase since January (a relatively meagre 0.8%).
The amount that people coast to coast are dishing out for rent and mortgage bills, though, has soared 6% from this time last year, which is 0.9% higher than July’s year-over-year spike.
Tenants are being impacted the most, with StatCan saying that “faster growth in shelter prices was led by the rent index, which rose 6.5% year over year nationally after a 5.5% gain in July. Among other factors, a higher interest rate environment, which may create barriers to homeownership, put upward pressure on the index.”
While rent hikes are accelerating at a faster rate month-over-month than mortgage increases, mortgage interest costs are up a shocking 30.9% as of August (compared to 30.6% in July).
The report also notes that grocery prices remain extremely high despite grocery inflation slowing ā food was 6.9% more expensive this August versus August 2022, compared to 8.5% more pricey this July versus July 2022 ā led by beef (up 11.9% YOY), sugar and sweets (up 10.9%), and coffee and tea (up 9%).
Food remains the most-inflated item compared to this time last year, despite not having the fastest-rising prices compared to last month.
Unfortunately, overall prices rose at a faster pace in August compared to July in every single province, but was the worst in Newfoundland and Labrador (+ 8.4%), Nova Scotia (+ 9.5%) and Manitoba (+ 6.1%), which appear to be catching up to the sticker shock we notoriously experience for basically everything in Ontario and BC.
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