Inflation Hits 39-Year High

2022-01-12T10:20:55-06:00

Led by higher prices for shelter and used vehicles, consumer prices soared by 7.0% in December from a year ago. It was the largest year-over-year gain since June 1982. However, energy prices fell in December, ending a long series of increases. Supply-chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to recent price increases in some sectors. Government stimulus efforts have also contributed to recent gains in inflation. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.5% in December on a seasonally adjusted basis, following an increase of 0.8% in November. Excluding the volatile food and energy components, the “core” CPI increased by 0.6% in December, after a 0.5% increase in November. In December, the indexes for shelter (0.4%) and for used cars and trucks (3.5%) were the largest contributors to the increase in the headline CPI. The index for shelter increased as the indexes for owners’ equivalent rent (OER) and rent of primary residence (RPR) both rose by 0.4%, same increases as in November and October. The food index also contributed, though it increased less (0.5%) than in recent months. Additionally, the price index for a broad set of energy sources fell by 0.4% in December, after a 3.5% increase in November. It was the first decrease since April 2021. Gasoline (all type) declined by 0.5% in December, after a 6.1% increase in November. During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 7.0% in December, following a 6.8% increase in November. The “core” CPI increased by 5.5% over the past twelve months, following a 4.9% increase in November. It was the largest annual growth since February 1991. The food index rose by 6.3% and the energy index rose by 29.3% over the past twelve months. NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index decreased by 0.2% in December, after a decrease of 0.1% in November. Over the twelve months of 2021, the monthly change of the Real Rent Index was -0.2%, on average. Related ‹ 2020 ACS Experimental Data: A Note for Home Building ResearchersTags: cpi, energy prices, inflation, owners’ equivalent rent, shelter

Inflation Hits 39-Year High2022-01-12T10:20:55-06:00

Inflation Surges in November

2021-12-10T10:23:40-06:00

In November, consumer prices increased by 6.8% from a year ago. It marks the largest year-over-year gain since June 1982. Supply-chain constraints and strong consumer demand related to the pandemic and the reopening of the economy have contributed to recent price increases in some sectors. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.8% in November on a seasonally adjusted basis, following an increase of 0.9% in October. Excluding the volatile food and energy components, the “core” CPI increased by 0.5% in November, after a 0.6% increase in October. In November, the price index for a broad set of energy sources increased by 3.5% in November, after a 4.8% increase in October. Gasoline (all type) rose by 6.1% in November, the same increase as in October. It marks its sixth consecutive monthly increase. The food index rose by 0.7% in November as the index for food at home increased by 0.8%. Like last month, most component indexes increased in November. The indexes for apparel (+1.3%), shelter (+0.5%), airline fares (+4.7%), used cars and trucks (+2.5%), and new vehicles (+1.1%) showed sizeable monthly increases in November. The index for major appliances rose by 2.4% in November, after a 0.9% decline in October. Meanwhile, the indexes for motor vehicle insurance, recreation, and communication all declined in November. The indexes for owners’ equivalent rent (OER) and rent of primary residence (RPR) both increased by 0.4% over the month. Monthly increases in OER and RPR have averaged 0.4% over the last three months. During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 6.8% in November, following a 6.2% increase in October. The “core” CPI increased by 4.9% over the past twelve months, following a 4.6% increase in October. The food index rose by 6.1% and the energy index rose by 33.3% over the past twelve months. NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index decreased by 0.1% in November, after a decrease of 0.2% in October. Over the first eleven months of 2021, the monthly change of the Real Rent Index was -0.2%, on average. Related ‹ One in Four New Homes are Infills or Teardowns in Older NeighborhoodsTags: core cpi, cpi, energy prices, multifamily, owners’ equivalent rent, shelter

Inflation Surges in November2021-12-10T10:23:40-06:00

Consumer Prices Post the Largest Gain in Three Decades

2021-11-10T12:24:03-06:00

By Jing Fu on November 10, 2021 • Compared to a year ago, on a not seasonally adjusted basis, consumer prices increased by 6.2% in October, the largest year-over-year gain since December 1990. Supply-chain constraints and strong consumer demand as the economy reopened have contributed to recent price increases. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.9% in October on a seasonally adjusted basis, following an increase of 0.4% in September. Excluding the volatile food and energy components, the “core” CPI increased by 0.6% in October, after a 0.2% increase in September. In October, most component indexes increased. The indexes for energy (+4.8%), shelter (+0.5%), food (+0.9%), used cars and trucks (+2.5%), and new vehicles (+1.4%) showed sizeable monthly increases in October, while the indexes for airline fares (-0.7%) and for alcoholic beverages (-0.2%) declined. In October, the price index for a broad set of energy sources increased by 4.8% in October, after a 1.3% increase in September. Gasoline (all type) rose by 6.1% in October. It marks its fifth consecutive monthly increase. The food index rose by 0.9% in October, the same monthly increase as in September. The index for shelter rose by 0.5% in October, as the index for owners’ equivalent rent (OER) increased by 0.4% over the month, the largest monthly increase in the past five years. NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index decreased by 0.2% in October, after an increase of 0.2% in September. Over the first ten months of 2021, the monthly change of the Real Rent Index was -0.2%, on average. Related ‹ Building Materials Prices Post Record Year-To-Date Increase through OctoberTags: core cpi, cpi, energy prices, multifamily, owners’ equivalent rent, shelter

Consumer Prices Post the Largest Gain in Three Decades2021-11-10T12:24:03-06:00

Consumer Prices Rise in September

2021-10-13T12:26:26-05:00

Inflation accelerated in September, as prices for food and shelter showed notable gains. Federal Reserve officials described the current inflation run as “transitory”, and attributed recent increases largely to supply-chain constraints and a surge in consumer demand as the economy reopened. And they expected “inflation pressures to ease as the effect of these transitory factors dissipated.” The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.4% in September on a seasonally adjusted basis, following an increase of 0.3% in August. Excluding the volatile food and energy components, the “core” CPI increased by 0.2% in September, after a 0.1% increase in August. The indexes for new vehicles (+1.3%), household furnishings and supplies (+1.3%), and motor vehicle insurance (+2.1%) rose in September, while the indexes for apparel (-1.1%), and several travel-related components including airline fares (-6.4%), lodging away from home (-0.6%), and used cars and trucks (-0.7%) all declined over the month. In September, the indexes for food and shelter contributed more than half of the monthly increase in the headline CPI. The food index rose by 0.9% in September, the largest monthly gain since April 2020. The index for food at home jumped by 1.2%, while the index for food away from home rose by 0.5% over the month. The index for shelter rose by 0.4% in September. The index for owners’ equivalent rent (OER) increased by 0.4% over the month, the largest monthly increase in the past five years. Meanwhile, the price index for a broad set of energy sources increased by 1.3% in September, after a 2.0% increase in August. Gasoline (all type) rose by 1.2% in September, slower than a 2.8% increase in August. During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 5.4% in September, following a 5.3% increase in August. The “core” CPI increased by 4.0% over the past twelve months, the same increase as the previous month. The food index rose by 4.6% and the energy index rose by 24.8% over the past twelve months. NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index rose by 0.2% in September, the same increase as in August. Over the first nine months of 2021, the monthly change of the Real Rent Index was -0.2%, on average. Related ‹ Stable Conditions for Construction Job OpeningsTags: core cpi, cpi, energy prices, multifamily, owners’ equivalent rent, shelter

Consumer Prices Rise in September2021-10-13T12:26:26-05:00

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