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MNI BRIEF: Annualized Rent Prices in CPI Closer to 7% - NAR

MNI STATE OF PLAY: Inflation Worry Key To BOK Policy Moves
MNI (Washington)
(MNI) Washington

Year-over-year rent prices in U.S. CPI are likely much higher than official figures suggest as demand for rentals "soars" due to record high home prices, NAR Chief Economist Lawrence Yun said Monday.

The rent component of CPI rose 1.9% from a year earlier in the Bureau of Labor Statistics' latest inflation report, but "what we're hearing is rent is up 5% to 7% as first time buyers are unable to buy" homes priced at record highs, Yun said Monday on a call with reporters.

Last month, MNI wrote that the Bureau of Labour Statistics could modify CPI calculations to adjust for an over-reliance on apartment rental data ( MNI INTERVIEW: BLS May Alter CPI Calculation Over Rent Skew ).

MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com
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