The latest Consumer Price Index (CPI) showed that housing cost pressures eased in February to the slowest pace in over three years.
Shelter costs rose 4.2% from a year earlier in February, slower than the 4.4% increase seen in January, and the smallest 12-month increase since December 2021.
On a monthly basis, housing costs ticked up 0.3% in Februarydown from January’s 0.4% monthly increase.
“Shelter inflation remains in a disinflationary trajectory, which will be a welcome development for those hoping for further progress on inflation,” Jeff Schulze, head of economic and market strategy at ClearBridge Investments, told Yahoo Finance in an email.
Economists have long expected a slowdown in rent increases, a trend that has been reflected in other data. February’s inflation print could be the latest sign that the broader cooldown in rents might finally appear in CPI. The BLS collects rent data every six months, which has caused a lag in the reporting.
The government said the rent index rose 0.3% in February, matching January’s pace of 0.3%.
Meanwhile, prices for owners’ equivalent rent increased 0.3% for the month, unchanged from January’s 0.3% gain. Owners’ equivalent rent is the estimated rent a homeowner would pay if they rented their property.
