A key component propping up consumer prices is cooling, but it’s not yet reflected in the government’s inflation measure, according to experts.
The shelter component of the Consumer Price Index — which includes rent and owners’ equivalent of rent — makes up 30% of overall inflation and 40% of core CPI, which excludes food and energy prices.
Real-time data is showing softening rents, but the survey used to determine shelter prices lags current pricing. That disconnect could pose a problem…
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