Fed
Rent inflation could remain elevated

The WSJ Timiraos tweeted that the KC Fed is out with a report saying:

  • There may be a false dawn in easing rents
  • a return to pre-pandemic rates of rent inflation it could remain elusive
  • Tight labor markets suggest rent inflation is likely to remain elevated
  • rent inflation contributed more than 3 percent to core CPI inflation in 2022:Q4.
  • Prior to the pandemic, when inflation was running near 2 percent, rent inflation was contributing only about 1.5 percent to core CPI inflation.
  • Even if goods inflation continues to normalize, rent inflation would also need to meaningfully decline to return inflation to 2 percent.

To read the full story CLICK HERE