When inflation in the U.S. reached its high point about two years ago, it was prevalent across nearly all categories—in grocery aisles, at the gas station and, perhaps most noticeably, in monthly rent checks.

Today, as price growth continues to moderate for many goods and services, stubborn housing costs remain a key sticking point for the Fed as they work toward their oft-repeated 2% inflation target before cutting interest rates. As Bloomberg noted recently, "hotter-than-expected readings for [housing inflation]…are a big reason why the central bank is hesitant to cut rates."

To wit, as measured by the Consumer Price Index, the Fed's main measuring stick for inflation, shelter prices climbed 0.4% for a third straight month in April. Notably, a key part of the CPI's shelter index, the so-called "Rent of Primary Residence" index, was once again robust in April, up 5.4% year-over-year.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.