Ontario: Inflation rate rises to highest level in 6 years at 2.5%
"Inflation rate rises to highest level in 6 years at 2.5%"
We're likely to see higher than 2.5% in the near future.
Currently, Ontario's RTA legislation states that the maximum increase shall be 2.5%, even if the Ontario Consumer Price Index is higher.
I'm not really sure how this makes any sense. Who is currently representing our interests at the provincial level? I'm not sure what the logic is/was that says that property owners are a special class of people who must legislatively be forced eat all the increases above 2.5%?
(Details: The annual rent increase guideline is determined according to section 120 (2) of the Residential Tenancies Act, 2006 which averages the monthly Ontario Consumer Price Index over a twelve month period that ends at the end of May of the previous calendar year.
If the calculation for the annual guideline amount exceeds 2.5% in any given year it will be reduced to 2.5%. The RTA was amended in 2012 when a maximum cap of 2.5% was implemented for all guideline increases.)