Plunging gasoline prices and dropping prices in a few other categories hold down overall CPI. A mess for the Bank of Canada.
From peak in March 2022, prices fell 15.6%, in Toronto 17.2%. But Calgary reached a new high (still waiting for the memo?).
Prices eased in other categories.
The Home Price Benchmark Index is down 14% from peak in March 2022, Toronto down 15%, after wild and woolly sucker rally over the spring.
Inflation dished up another nasty surprise. Other costs jumped too. Gasoline didn’t help. This was a broad-based mess.
The Home Price Benchmark Index is down 13% from peak in March 2022. The Canadian housing market is in a category of its own, in terms of craziness.
The BoC already shed 50% of its QE assets, and the shedding continues.
Short-term yields spiked, and mortgage rates with them: First results of the Bank of Canada’s unpause on the housing market.
China still produced more than the rest of the world combined, 12 times more than the US.
More rate hikes are on the table. “Overall, excess demand in the economy looks to be more persistent than anticipated.”