Bank of Canada Rate Hikes Drive Up Shelter Costs, Squeezing Canadian Households

The Bank of Canada's interest rate hikes to fight inflation have caused financial hardship for Canadians as shelter costs soar.

Shelter inflation accounts for over 28% of CPI and is rising rapidly, skewing the true inflation rate.

Excluding shelter inflation would put inflation below 2% - the Bank's target.

Unlike other central banks, BoC includes mortgage costs when measuring inflation.

BoC should adjust its CPI focus so borrowers don't bear the brunt of rate hikes aimed at cooling the housing market.