What’s propping up inflation? Blame housing
1 month, 1 week ago

What’s propping up inflation? Blame housing

CNN  

CNN — Kayla Kataska began shopping for her first home last month — and she’s already had to adjust her expectations. Last fall, when the Fed began slashing interest rates from a bruising 23-year high, some experts were prepared to declare victory in the central bank’s fight against a historic bout of inflation. In the months since the Fed’s first rate cut in September, though, the US government’s two main measures of inflation, the CPI and the Personal Consumption Expenditures price index, have remained stubbornly elevated. Kevin Carter/Getty Images “Proportionally, it’s a large part of the market basket,” Erica Groshen, former Commissioner of the Bureau of Labor Statistics, which administers CPI, said of housing inflation’s input into the index. It takes a couple years for that to roll through the actual inflation data, so that should be helping us bring inflation back down.” Aditya Bhave, a senior US economist at Bank of America, said he thinks it’s “almost a given” that housing inflation will fall year over year in the near future, though he cautioned that it didn’t necessarily mean that the Fed’s war with inflation was entirely won.

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History of this topic

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead
3 months, 1 week ago

Inflation heated up last month as consumer prices rose 2.7%, underscoring the slog ahead

CNN  

CNN — Inflation heated back up again in November, but it likely wasn’t bad enough to keep the Federal Reserve from cutting rates next week. “We have some PTSD around egg prices from the pandemic and certainly lingering avian flu outbreaks; but those prices being up almost 40% year over year certainly is another thing people will look at in …

US inflation stays firm for third month with 0.3 percent core CPI gain
4 months, 1 week ago

US inflation stays firm for third month with 0.3 percent core CPI gain

Hindustan Times  

A measure of underlying US inflation remained firm in October, underscoring the ongoing risks Federal Reserve officials face in trying to bring price pressures fully under control. The US central bank will also have to contend with a new set of policies under President-elect Donald Trump, with companies already considering raising prices in anticipation of the higher tariffs he’s promised …

Inflation hit a bump in October after slowing for six straight months
4 months, 1 week ago

Inflation hit a bump in October after slowing for six straight months

CNN  

CNN — The annual rate of inflation moved higher last month for the first time since March, as expected — but economists say the underlying trend remains favorable for another round of interest rate cuts. Consumer prices rose 0.2% last month and were up 2.6% from the year before, according to the latest Consumer Price Index data released Wednesday by …

U.S. Inflation Eased Last Month In The First Slowdown Of 2024
10 months, 1 week ago

U.S. Inflation Eased Last Month In The First Slowdown Of 2024

Huff Post  

LOADING ERROR LOADING WASHINGTON — Consumer inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2% target level before …

Inflation improves slightly in April, but high cost of housing remains a big obstacle
10 months, 1 week ago

Inflation improves slightly in April, but high cost of housing remains a big obstacle

LA Times  

Cheryl Tugade, left, and Sanaa Sodhi look for apartments in Berkeley. “Because of high interest rates,” he said, “there’s no mobility out of rental situations to buy homes. Fed policymakers track a different inflation measure in which housing isn’t given as much weight in figuring overall inflation. “Maybe if we’re lucky we get one cut this year.” The Fed’s benchmark …

Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is
1 year ago

Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is

LA Times  

Recently released government data hammered home what we have known for at least a year: A national housing shortage, not broad-based price increases, is driving inflation. All told, for everything other than housing, inflation was just 1.5% — low enough that if housing prices had grown at historical rates, the Fed could have declared victory. The outsize role of shelter …

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus
1 year, 1 month ago

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus

Associated Press  

WASHINGTON — The Federal Reserve’s preferred inflation gauge cooled further last month even as the economy kept growing briskly, a trend sure to be welcomed at the White House as President Joe Biden seeks re-election in a race that could pivot on his economic stewardship. Friday’s government report showed that prices rose just 0.2% from November to December, a pace …

How will the latest rise in inflation impact house prices?
1 year, 2 months ago

How will the latest rise in inflation impact house prices?

Daily Mail  

A drop in house prices is 'inevitable' following the latest inflation figures, a top property trade body suggests. The headline CPI rate defied expectations of a dip in December, rising from 3.9 per cent to 4 per cent Property insiders agreed that it is likely to be a 'bumpy ride' ahead for the property market. The typical home was worth …

US inflation eased slightly last month as price increases extend slow descent
1 year, 5 months ago

US inflation eased slightly last month as price increases extend slow descent

Associated Press  

WASHINGTON — Measures of U.S. inflation barely declined in September, evidence that consumer price increases are grinding lower at a gradual pace. And underlying inflation declined a bit: So-called core prices, which exclude volatile food and energy costs, climbed 4.1% in September from a year earlier, down from a 4.3% pace in August. “It still suggests that we have exited …

Inflation ticks up modestly to 3.2% but core products continue to cool - sparking speculation the Fed could pause relentless interest rate hikes in September
1 year, 7 months ago

Inflation ticks up modestly to 3.2% but core products continue to cool - sparking speculation the Fed could pause relentless interest rate hikes in September

Daily Mail  

Inflation in the US has ticked up to a 3.2 percent annual rate - rising slightly in July from June's 3 percent annual increase. Inflation in the US has ticked up to a 3.2 percent annual rate - rising slightly in July from June's 3 percent annual increase The 3.2 percent annual inflation rate is a sharp decrease from the …

The rising cost of shelter represented 90% of last month’s inflation
1 year, 7 months ago

The rising cost of shelter represented 90% of last month’s inflation

CNN  

Washington, DC CNN — The latest Consumer Price Index shows that shelter costs contributed 90% of total inflation last month — but there’s a sharp turnaround ahead, say economic researchers at the Federal Reserve Bank of San Francisco. The researchers at the San Francisco Fed crafted models combining several measures of local shelter and rent inflation to help explain how …

White House cheers ‘Bidenomics’ as inflation rises by only 0.2%
1 year, 8 months ago

White House cheers ‘Bidenomics’ as inflation rises by only 0.2%

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ /verifyErrors }} President …

Priced out: young people needing housing face a closed door
2 years, 1 month ago

Priced out: young people needing housing face a closed door

Dutch News  

The papers are full of news about house price movements, new political drives and house building plans. Delft university housing systems professor Peter Boelhouwer calls it a ‘wicked’ market, where first time buyers and those on mid-level incomes get stuck in ‘a big poverty gap/trap.’ By 2022, he says, a two-income couple on an average income needed savings of €280,000 …

Priced out: young people needing housing face a closed door
2 years, 1 month ago

Priced out: young people needing housing face a closed door

Dutch News  

The papers are full of news about house price movements, new political drives and house building plans. Delft university housing systems professor Peter Boelhouwer calls it a ‘wicked’ market, where first time buyers and those on mid-level incomes get stuck in ‘a big poverty gap/trap.’ By 2022, he says, a two-income couple on an average income needed savings of €280,000 …

US inflation slows to 6.4%, but price pressures re-emerge
2 years, 1 month ago

US inflation slows to 6.4%, but price pressures re-emerge

Associated Press  

WASHINGTON — The pace of consumer price increases eased again in January compared with a year earlier, the latest sign that the high inflation that has gripped Americans for nearly two years is slowly easing. At the same time, Tuesday’s consumer price report from the government showed that inflationary pressures in the U.S. economy remain stubborn and are likely to …

U.S. consumer inflation eased to 7.7% over last 12 months
2 years, 4 months ago

U.S. consumer inflation eased to 7.7% over last 12 months

LA Times  

Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and consumers grow more cautious. Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates to try to stem persistently high price …

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way
2 years, 4 months ago

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way

ABC  

Pushing up interest rates isn't something the Reserve Bank does lightly. The jump in inflation from 6.1 per cent to 7.3 per cent, revealed last Wednesday, made it clear that, even after six consecutive interest rate hikes, inflation was further away from the Bank's target band than it had ever been. The RBA's 2-3 per cent inflation target band was …

Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened
2 years, 4 months ago

Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened

ABC  

Is there a better way to calculate inflation? Coz it seems like these interest rate hikes aren’t working as well as the RBA would like!!! Secondly, we’re all impatient to see inflation falling but it’s going to take time unfortunately, under current policy settings. And for the last 12 months, Perth’s annual inflation, at 6 per cent, has been the …

As the causes of US inflation grow, so do the dangers
2 years, 5 months ago

As the causes of US inflation grow, so do the dangers

Associated Press  

WASHINGTON — What keeps driving inflation so high? Thursday’s report on consumer prices in September came in hotter than expected even as some previously big drivers of inflation — gas prices, used cars — fell for a third straight month. “The profile of who’s buying used is a dramatically upper-scale type of customer.” SERVICES INFLATION TAKES OVER Rising prices can …

As the causes of US inflation grow, so do the dangers
2 years, 5 months ago

As the causes of US inflation grow, so do the dangers

Associated Press  

WASHINGTON — What keeps driving inflation so high? Thursday’s report on consumer prices in September came in hotter than expected even as some previously big drivers of inflation — gas prices, used cars — fell for a third straight month. “The profile of who’s buying used is a dramatically upper-scale type of customer.” SERVICES INFLATION TAKES OVER Rising prices can …

Bringing down inflation might cause your rent to rise
2 years, 8 months ago

Bringing down inflation might cause your rent to rise

LA Times  

Britt and Danielle Vaughan have been renting an apartment in Pasadena since 2014. Tamping down demand for mortgages is straightforward, but the Fed’s actions “probably aren’t affecting demand for rent to a significant degree.” Zandi expects acceleration in the official inflation data for rents to continue into 2023. “There are two possibilities why this is happening: Wealthier renters are entering …

Think rent is rising fast? It’s worse than you think (and inflation might be too)
2 years, 8 months ago

Think rent is rising fast? It’s worse than you think (and inflation might be too)

LA Times  

The rate of inflation has hit an all-time high for renters seeking new housing. Beyond masking the extent of inflation faced by new tenants, Sohn said, the agency also distorts the market’s reality with the way it calculates the cost of housing ownership. “If I were to rent my own house to myself right now when the price rise is …

Where is inflation headed? Nine signs to watch
2 years, 9 months ago

Where is inflation headed? Nine signs to watch

Live Mint  

Inflation is close to a 40-year high—a development that is challenging households, companies and government policy makers. Here are the signals that economists are watching to anticipate how the U.S. inflation outlook is shaping up: Short-term inflation momentum The inflation reading that makes headlines is an annual reading of the consumer-price index, which measures the pace of price increases in …

Inflation is not 'out of control', but interest rates may have to rise this year
3 years, 1 month ago

Inflation is not 'out of control', but interest rates may have to rise this year

ABC  

Australian consumers saw prices rise by 3.5 per cent last year. Inflation running at 3.5 per cent Most of the price increases facing consumers in Australia last year were driven by pandemic-related economic disruptions. Gareth Aird, a Commonwealth Bank economist, says Australia's labour market will keep tightening this year, meaning even more people will find jobs and the unemployment rate …

Inflation: What’s driving it, who benefits and when will it end?
3 years, 2 months ago

Inflation: What’s driving it, who benefits and when will it end?

LA Times  

Gas prices, exacerbated by supply pullbacks, have been one of the biggest contributors to inflation, which hit its highest mark in almost 40 years in 2021. “So they’re paying such a low rate of interest relative to inflation that they’re better off.” Suppliers of construction and manufacturing materials such as lumber and steel are also doing well, said Lynn Reaser, …

Why Inflation Could Linger
55 years, 2 months ago

Why Inflation Could Linger

Slate  

When it comes to America’s recent bout of unexpectedly high inflation, Joe Biden and Jerome Powell are both making the same bet: It’s just temporary. The inflation we’re experiencing may just be a “transitory” phenomenon—as Powell likes to put it—that we have to cope with as the economy gets back to normal, and the worst of it could even be …

Inflation may be very low but our cost of living is rising much faster
5 years, 7 months ago

Inflation may be very low but our cost of living is rising much faster

ABC  

When trying to describe inflation in a non-technical way, economists often use the shorthand of "rising cost of living". Key points: The ABS CPI figures out on Wednesday are expected to show prices rose 1.5 per cent over the year to June 30 However, analysis by Fidelity shows prices for essential goods and services have generally risen much faster than …

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