Inflation has been lukewarm everywhere. Everywhere except housing.
On Wednesday, the latest data from the Bureau of Labour Statistics showed that the consumer price index rose 0.2% in July from a year ago. Excluding food and energy, core prices climbed by a meager 1.8%.
This chart, via Bloomberg’s Matthew Boesler, shows that shelter prices have risen over the past couple of years, while the prices of virtually everything else have been on a downward trend.
The latest CPI data showed that shelter costs rose 0.4% in July from June, and have risen every other month this year. Compared to last year, they are up 3.1%.
Last month, the National Association of Realtors, which publishes monthly home sales data, noted that limited supply pushed the national median sales price to an all-time high in June. The prior peak was in July 2006 before the housing market downturn.