While we still do not have inflation data for February, March, April and May of 2022, here is a look at how the future Guideline for 2023 is shaping up based on the data that we do have.
Since our previous post on this subject, the average calculated CPI-based number has already gone up quite a bit (by 0.5%, to be exact). Today Statistics Canada published January 2022 inflation data, so we are sharing the updated table for those who are following these changes:
The results are already averaging at 4.5% (without February, March, April, May 2022) with no signs of slowing down.
No matter how we look at it, it is highly likely that the Guideline for 2023 will be equal to the maximum allowable cap of 2.5% (the cap was introduced by Bill 19, Residential Tenancies Amendment Act (Rent Increase Guideline), 2012, see RTA subsection 120(2)2), unless the law changes.
This seems to be creating a greater divide between:
(a) 'rent-controlled' units which fall under the Guideline under RTA section 120 (which might end up with significantly lower rent increases than what even the official CPI numbers would generate) and
(b) units which are exempt from the Guideline (under RTA section 6.1), which may face any rent increases every 12 months (even if they lead to constructive economic evictions).
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