Shelter Inflation is ‘the Most Disappointing Aspect’ of July CPI Report

by Dani Romero
Yahoo! Finance

The latest Consumer Price Index (CPI) report revealed one category where inflation continues to be stubbornly sticky: housing costs.

Wednesday’s data from the Bureau of Labor Statistics showed that shelter costs ticked up 0.4% month over month in July, higher than June’s 0.2% rise. Housing inflation accounted for nearly 90% of the monthly increase in CPI in July.

“The most disappointing aspect of this report was the shelter data,” Omair Sharif, founder of the research firm Inflation Insights, wrote in a note after the report.

Rent and owners’ equivalent rent each rose 0.5% and 0.4%, respectively, on a monthly basis in July, slightly higher than June’s 0.3%. Owners’ equivalent rent is the hypothetical rent a homeowner would pay for the same property.

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