The Loonie Hour Inflation Rebounds Ahead of Bank of Canada Decision
18 snips
Oct 25, 2025 Inflation unexpectedly increased in September, raising concerns among market watchers. The hosts explore the complexities of housing affordability, noting a steep 18% drop in Canadian home prices yet persistent income gaps. They debate the implications of rising shelter costs and scrutinize StatsCan's measurement methods. Global economic pressures influence central banks' easing policies, while upcoming government debt rollovers could impact rates. The conversation touches on a proposed carbon tax on shipping, revealing friction in international politics.
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Housing Starts Are A Lagging Signal
- Canadian housing starts are reported on a lag and heavily influenced by pre-sales, so current starts reflect decisions from up to two years ago.
- Pre-sale lows in Toronto and Vancouver imply future housing starts and construction activity will fall further.
Price In Electrification Costs For Multiplexes
- Account for higher servicing and running costs when converting single-family lots to multiplex units, especially electrical upgrades and pad transformers.
- Factor grid capacity and future electricity rates into feasibility for multi-unit redevelopment.
Inflation Has Become Stickier Than Expected
- Canada CPI rose to 2.4% in September, driven by food and shelter components pushing core measures higher.
- Rising producer prices and sticky services suggest inflationary pressures may persist despite weak demand.
