The BoC flagged shelter price inflation differences across DM countries. It notes the UK and Europe are the only two DM areas which do not include owner-occupied housing price inflation in their CPI measures. The shelter excluding utilities CPI weightings are only 9.2% and 9.5% in the UK and Europe, respectively, while they are 34.9% for the US and 25.7% for Canada. The methodology differences have helped make Europe's shelter inflation the lowest within DM since 2022.
The UK and Europe seem to underestimate their inflation when compared to their peers. - UBS
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