In short, the rent is too damn high — and it’s keeping inflation and interest rates elevated alongside it.
We’ll see if they’re right on Tuesday morning when February’s CPI data is due out.
“Shelter inflation has been a big focal point for the market,” they wrote in a note on Monday.
“We remain confident that [rent prices] will flatline in 2024, rather than fall,” Capital Economics analyst Thomas Ryan wrote in a recent note.
That means a current deceleration in rent prices won’t be fully factored into inflation data until February 2025.
Persons:
Greg McBride, ”, Jerome Powell, “ It’s, Powell, aren’t, “, Thomas Ryan, Ritti Singh, Singh, won’t, isn’t, Goldman Sachs, Clare Duffy, Reddit, it’s, That’s, Matt Egan, Joe Biden, Bespoke’s Paul Hickey, ” Hickey
Organizations:
CNN Business, Bell, New York CNN, Federal Reserve, CPI, Bank of America, ” Capital, Housing Justice, Fed, Dallas Fed, AAA, Federal, Investment
Locations:
New York