Journal Article
Do rising rents complicate inflation assessment?
Abstract: In the face of falling house prices, decreasing rates of homeownership, and a glut of vacant homes, the Consumer Price Index?s measure of the cost of owner-occupied housing?owners? equivalent rent of residence (OER)?has begun to accelerate, rising at an annualized rate of 2.3 percent over the past six months. Given a backdrop of generally subdued underlying inflation elsewhere in the index, a persistent increase in the relative price of OER?the largest component of the consumer market basket by far?may create upward pressure on measured inflation.
Keywords: Rent; Inflation (Finance); Consumer price indexes;
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https://www.clevelandfed.org/~/media/content/newsroom%20and%20events/publications/economic%20commentary/2012/ec%20201202%20do%20rising%20rents%20complicate%20inflation%20assessment/ec%20201202%20do%20rising%20rents%20complicate%20inflation%20assessment%20pdf.pdf?la=en
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2012
Issue: Feb
Order Number: 2