Rent, mortgage interest helped drive inflation higher in April: Statistics Canada

The first increase in annual inflation since its June 2022 peak was driven in part by higher mortgage interest costs and higher rent prices, Statistics Canada said Tuesday.

Mortgage interest costs were up 28.5 per cent in April compared with a year ago as a result of the Bank of Canada raising interest rates at a breakneck pace over the past year. That's up from 26.4 per cent in March and 23.9 per cent in February. 

“That’s the sharpest increase we’ve seen recently,” said Kiefer Van Mulligen, economist with The Conference Board of Canada

Mortgage payments have spiked as Canadians are forced to renew mortgages at current high interest rates, he said.