Reported 28 days ago
The recent increase in the Consumer Price Index (CPI) shelter index, which rose by 0.5% in August, has been described as 'mysterious' by UBS economist Brian Rose. He indicates that this acceleration in owners' equivalent rent is puzzling as actual lease data peaked nearly two years ago, suggesting a potential lag in CPI reflecting true market conditions. This lag may be extending to 18 months, leading to questions about how the Federal Reserve should interpret this data ahead of its September meeting, especially given that inflation, excluding shelter costs, is much lower at 1.1% year-over-year.
Source: YAHOO