Housing costs, particularly rental prices, have been a significant factor in the recent rise of core inflation. Despite signs of moderation, there are concerns about a potential reacceleration. The Consumer Price Index (CPI) report highlights the impact of rising housing and energy costs on inflation, with rental prices and shelter costs being key drivers.
Shelter costs remain the key inflation driver. Excluding shelter, annual inflation was only 1.2% y/y in April-lowest since Feb21. Rents added fuel to inflation along with mortgage interest. Grocery prices still very high, slowing down to +1.4% y/y https://t.co/73Ydd53Ux0
Why is better inflation data coming? Core CPI is up 3.6% YoY. According to @sonusvarghese, 0.73% of that came from auto insurance and 2.37% came from rents and OER. In other words, 85% of the increase in core inflation came from these three areas. Last month rents finally…
Rising housing and energy costs are still impacting inflation the most. The Consumer Price Index (CPI) report tracks price changes for goods and services in 75 cities, considering 6,000 housing units and 22,000 retailers. https://t.co/9C4v9Mf3IO https://t.co/Ybf6PWwek1
"The huge hurdle in bringing inflation down is housing. Rental prices continue to rise rapidly in government data." https://t.co/8HzbjNhico
Rents are cooling down in the official data but already there are signs of a reacceleration ahead, says @conorsen. How will the Federal Reserve deal with the puzzle that is housing inflation? https://t.co/0kHIFG8JDg via @opinion
Housing costs remained elevated in April, serving as the largest contributor to core inflation's rise last month, but there remain signs that prices are starting to moderate. https://t.co/p3BdMAb1Ee