Rent increases in British Columbia will now be capped solely based on the province’s yearly inflation rate, Premier John Horgan announced in a press conference earlier today. The change slashed allowable rent increases, which were typically made up of inflation rates combined with an additional 2%, and mean the stability of inflation will become massively important to landlords and tenants alike.
Inflation measures the change in value of money by considering the difference of the consumer price index (CPI) between years. The CPI is described as the cost of a basket of goods and it changes when average prices of those goods rise or drop.
Goods considered include: food, housing, apparel, transportation, medical care, education, and other goods and services