Mortgage interest cost index slows but cost of living remains higher

by Steve Randall on 21 Oct 2019

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.

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