Shelter costs rose 4.9% on a year-over-year basis in April, after a 5.4% increase in March. Canadians continued to pay more in mortgage interest cost in April (+28.5%) compared with April 2022, as more mortgages were initiated or renewed at higher interest rates. The higher interest rate environment may also be contributing to rising rents in April 2023 (+6.1%) by stimulating higher rental demand.
The year-over-year increase in the homeowners’ replacement cost index slowed for the 12th consecutive month in April (+0.2%) compared with March (+1.7%), reflecting a general cooling of the housing market.
Natural gas prices decelerated, increasing by 0.9% on a year-over-year basis in April, compared with a 13.4% increase in March. Driving this deceleration was a smaller natural gas price increase in Ontario (+4.6%) in April, after a 31.8% increase in March. Lower delivery fees contributed to the slowdown in April.