Consumer Price Index, August 2026

The Consumer Price Index (CPI) rose 3.0% year over year in August, matching the 3.0% increase in July. On a seasonally adjusted monthly basis, the CPI increased 0.2% in August.

Our take: With CPI stuck at 3.0%, the Bank of Canada's rate-cutting cycle is dead in the water—expect the policy rate to stay elevated through Q4, keeping mortgage rates sticky and cap rates compressed. Investors chasing yield in 2026 need to price in a prolonged high-rate environment rather than betting on meaningful capital appreciation from rate compression.

In your underwriting: Keep mortgage assumptions at 5.5%+ and stress 25-basis-point rate increases rather than decreases, which directly raises your debt service costs and lowers DSCR headroom on leveraged deals.

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