Reported 8 months ago
The main driver of inflation, owners' equivalent rent (OER), is a cost that most Americans don't directly have to pay. OER attempts to measure what homeowners could charge to rent their own properties, but since most Americans are homeowners and not renters, this can distort how people perceive inflation. Despite overall inflation cooling down, OER has kept inflation elevated as it accounts for more than a fourth of the Consumer Price Index. With OER not reflecting costs that most people pay, it contributes to negative perceptions of inflation and the economy.
Source: YAHOO