Inflation rate alone will decide allowable rent increase, what is inflation rate?

Noah Bergstrom/ September. 27th, 2018

Ontario and Manitoba both have already implemented inflation rate as their allowable rent increase cap,
(graphic courtesy Riley Radiuk)

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

“Inflation is a sign of a healthy economy it will typically be around 1-3%” – Kevin Wainwright, Economist

Premier John Horgan announces task force recommendation to cut allowable rent increases 2% will be accepted, Making increase in cost of living the key decider of rent hikes.