Sabourin shows, however, that significant improvements have greatly reduced this bias in recent years, in P. Sabourin, “Measurement Bias in the Canadian Consumer Price Index: An Update,” Bank of Canada Review (summer 2012): 1–11. 13 There is a significant positive correlation between house price growth, as measured by the Teranet–  National Bank House Price Index, and CSCE respondents’ inflation perceptions and expectations.
- 10 particularly relevant in recent years, when we’ve seen rapid increases in house prices in markets like Toronto and Vancouver. This effect is understandable, since most Canadian households purchase a residence at some point in their lifetime.