There is a problem with the BLS’ housing inflation measure; it’s hypothetical “Bull****.”
The Case, Shiller 20-city House Price Index, is up 19.1% year over year. The only period with a somewhat comparable increase was in 2005 when it rose 14.9%.
Per Apartment List’s August update: Since January 2021, the national median rent has increased by a staggering 13.8 percent.
With a 30% contribution to CPI, Shelter prices are prone to boost CPI higher in the months ahead.
It seems like a logical conclusion, but is it?
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