MNI BRIEF: Toronto Homebuilding Costs Rise 13% YOY in 2Q

New home construction costs in Canada's largest city of Toronto surged 13% in the second quarter from a year ago, underlining the challenge governments face as the country brings in a record number of immigrants and the central bank seeks to cool inflation.

Statistics Canada's construction price index rose 7.5% for housing from April to June from a year earlier, according to a report Monday. On a quarter-over-quarter basis, prices rose 1.9% following a 1.8% rise in the first quarter. Builders across 11 major markets cited problems finding workers, rising wages and higher costs for materials such as concrete. (See: MNI INTERVIEW: Canada House Building Hit By Rates, Shortages)