Inflation in America is all about one thing

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.

NOW WATCH: You can get a room in NYC for $US39 a night on Airbnb — you just have to sleep in a van in Queens

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at