The last Consumer price index (ICC) have shown that pressures on housing costs have relaxed in February at the slowest rate in more than three years.
The costs of shelters increased by 4.2% compared to the previous year in February, slower than the 4.4% increase observed in January, and the smallest increase of 12 months since December 2021.
On a monthly basis, housing costs increased by 0.3% in February compared to the monthly increase of 0.4% of January.
“The inflation of the refuge remains in a disinflationist trajectory, which will be a welcome development for those who hope for new progress on inflation,” Jeff Schulze, responsible for economic and market strategy at Clearbridge Investments, in Yahoo Finance, told Yahoo Finance.
Economists have long expected a slowdown in rent increases, a trend that has been reflected in other data. February inflation printing could be the last sign that the broader recharge time of rents could finally appear in CPI. BLS collects rent data every six months, which caused a gap in reports.
The government said the rent index increased 0.3% in February, corresponding to the rate of 0.3% in January.
Meanwhile, the owner’s equivalent rent prices increased by 0.3% for the month, unchanged compared to the 0.3% gain in January. The equivalent rent of the owners is the estimated rent that an owner would pay if they rented their property.