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Mortgage interest cost index slows but cost of living remains higher
10/21/2019 | Posted in Canadian Economy and Interest Rates by Paul DeAdder | Back to Main Blog Page
The cost of living was higher across many products and services in September.
The latest Canadian Consumer Price Index from Statistics Canada shows a 1.9% increase year-over-year, the same as in August; on a seasonally adjusted monthly basis it would show a 0.1% decrease.
The CPI was kept in check by a 10% decrease in the price of gasoline, without which the rise would have been 2.4%, the same as in the previous three months.
Prices for goods were up 1.3% year-over-year in September, the fastest pace of growth in over a year, while services gained 2.2%, a slower pace than in August.
Meat prices were up 5.5% and overall food prices were up 3.7% year-over-year.
The mortgage interest cost index increased 7.5% year-over-year following a peak of 8.2% in April and May due to interest rate hikes over the previous two years. Growth has slowed as commercial banks offer lower mortgage rates.
Meanwhile, rent was up 3% year-over-year, eating out in restaurants was up 2.7%, and auto insurance was 8.9% more expensive.
