Steve Flynn  RE/MAX Crest Realty- Burnaby 

Cell: 604.785.3977 |

Categories

Canadian Inflation - February 27, 2019

Canadian inflation, as measured by the Consumer Price Index (CPI), registered only 1.4 per cent in the twelve months to January. That was a significant drop from 2 per cent in December due to a 7 per cent decline in energy costs.  Excluding the impact of falling gasoline prices, consumer prices were up 2.1 per cent. The Bank of Canada's three measures of trend inflation were unchanged for a third straight month, averaging 1.9 per cent.   In BC, provincial consumer price inflation was 2.4 per cent in the 12 months to January. 

Given stable inflation and what looks to be weak first quarter economic growth in Canada, the Bank of Canada is unlikely to change course any time soon.  Those expectations are being reflected in the steep drop in 5-year government bond yields, but not yet in mortgage rates offered by most lenders, which have only come down modestly.  A further fall in 5-year mortgage rates may be on the horizon as lenders compete for market share in the upcoming spring market, which would provide some degree of relief from the overly stringent stress test.



Copyright British Columbia Real Estate Association. Reprinted with permission.


Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.