The Canadian house price index from Teranet and National Bank
– Prior was +13.0% y/y
– Prices up 1.0% m/m
– Prior m/m reading was +0.5%
– Index at 202.25 vs 200.34 prior
At what point does a central bank have to take more house price inflation into their model? They look at owners’ equivalent rent but that’s a flawed statistic because so much of those increases roll forward to future years.
