Canadian CPI: Rent component is suddenly blasting higher – BMO Capital Markets

Dhwani Mehta FXStreet

The BMO Capital Markets analysts are out with their afterthoughts on the surprise jump in the Canadian inflation, highlighting the unexpected change.

Key Quotes:

"After being stable and mild -- bizarrely mild -- for years, the rent component of the Canadian CPI is suddenly blasting higher. A change in StatsCan's methodology (i.e., moving somewhat closer to reality) has led to a sudden acceleration. After averaging just 1.2% annualized gains over the past 15 years, rents have jumped 2.7% y/y.

That's the biggest rise in this component since 1992, and we're likely headed much higher, since the six-month trend is 4%."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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