Okay, fair enough. Thank you.
Evidence of meeting #12 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cpi.
A video is available from Parliament.
Evidence of meeting #12 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cpi.
A video is available from Parliament.
5:05 p.m.
Director, Consumer Prices Division, Statistics Canada
The principal payment is not included.
5:05 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
It is not included. A moment ago the chief statistician said it was included.
5:05 p.m.
Director, Consumer Prices Division, Statistics Canada
There is a mortgage interest cost formula that amortizes mortgages over 20 to 30 years.
5:05 p.m.
Conservative
5:05 p.m.
Director, Consumer Prices Division, Statistics Canada
That is 3.4%. The principal itself, because the house is an asset and not paid for as a consumption good, is not included.
5:05 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
That is incredible. As I pointed out earlier, it was equal to one-fifth of the entire economy in 2021. The fact that you're not even really including it demonstrates that we're not really judging the change in the cost of living in the CPI.
You mentioned that there's been an increased demand for housing. Where did the money come from?
January 17th, 2022 / 5:05 p.m.
Chief Statistician of Canada, Statistics Canada
We don't get into that. As I mentioned earlier, we don't do that.
If I may—
5:05 p.m.
Conservative
5:05 p.m.
Chief Statistician of Canada, Statistics Canada
If you'll allow me, I'll just make one point.
5:05 p.m.
Liberal
5:05 p.m.
Liberal
The Chair Liberal Peter Fonseca
No, Mr. Poilievre, your time was 37 seconds. You gave the witness five seconds and then cut him off. Allow the witness to answer.
5:05 p.m.
Liberal
5:05 p.m.
Chief Statistician of Canada, Statistics Canada
I think your question is bang-on. On the conceptual part, when you purchase a home, where's that principal component? It's an important question.
5:05 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
I'm sorry. On a point of order, Mr. Chair, I asked a different question. The question was where the money came from. Now we're back to an earlier part of the conversation.
We're very limited on time, so I'd just like to go back. My clock is now paused, but I'd like to get back to my questioning.
5:05 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Thank you.
The next question, then, is this: The money supply increased by about $400 billion during the pandemic. Did any of that money end up in the mortgage system?
5:05 p.m.
Chief Statistician of Canada, Statistics Canada
I don't have any answer to that question.
5:05 p.m.
Conservative
Pierre Poilievre Conservative Carleton, ON
Okay.
Professor Charlebois from Dalhousie University indicated that “shrinkflation”, which is when products include less actual food in the packaging but the price does not change, is one way prices are, in real terms, actually going up, but that is not being tracked by Statistics Canada. As such, food inflation is not being properly captured.
Do you have a comment on that?
5:05 p.m.
Chief Statistician of Canada, Statistics Canada
We do, in fact, account for any kind of change. It is standardized to a certain quantity and then the price, whether that's per gram, per half kilogram, per pound, per litre or whatever it is. We do, in fact, absolutely account for changes in the quantity.
5:05 p.m.
Liberal