Take it Out, and Cut Already!
Canadian banks are releasing reports, one-after-the-other, urging the Bank of Canada to stop using components of shelter inflation in its core CPI calculations.
I mean, why should shelter costs (needed to live) be part of the a critical cost of living index?
They argue that mortgage interest is not included in US CPI, and should therefore not be included here in Canada — but they leave out one important point: Americans can write off their mortgage interest. (or get a huge flat-rate deduction instead)
National Bank
In their March 19th report titled: “All provinces have CPI ex-shelter at or below 2%” the National Bank writes:
“We note that CPI inflation outside shelter was only 1.3% in February, with 9 out of 10 provinces at 2% or below.”
CPI ex-shelter is exactly what you think it is — they took out all shelter costs to show: “look we beat inflation!”
That’s perfect for human beings who dont need shelter.
They then proceed to provide a link to another one of their reports showing how shelter is “contaminating” inflation measures:
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