If You Want To Predict Inflation’s Path, Look at Rents

Source: Yahoo News
by Matthew Boesler

“The Federal Reserve’s attempt to get a clean read on post-pandemic inflation has focused attention on gauges that elevate housing costs, which is why what happens to rental inflation will factor heavily into the future of monetary policy. The good news is rental inflation may be close to topping out after advancing almost 6% in the 12 months through July. The bad news is it will take a while to settle back down to anything resembling pre-coronavirus norms. And that means Fed officials will maintain high interest rates for some time. … A monthly Labor Department report on consumer prices due out Tuesday is expected to show so-called core inflation, a widely tracked measure that excludes volatile food and energy prices, rose by another 0.3% in August after a similar increase in July.” (09/13/22)

https://finance.yahoo.com/news/want-know-where-us-inflation-110000417.html