Mortgage interest making shelter dominant driver of inflation: Desjardins

Shelter costs will continue to be the main driver of Canadian inflation “for the foreseeable future,” according to a new economics report from Desjardins.

The report’s author pegged rising mortgage interest, driven higher by elevated interest rates, as the main culprit behind runaway shelter inflation that’s making it more expensive to own and rent a place to live in Canada.

“According to our analysis, higher-for-longer shelter inflation will be the dominant driver of headline Canadian inflation for the foreseeable future,” read the report published Thursday.

“The sustained high pace of shelter inflation is expected to be almost entirely driven by rising mortgage interest cost.”