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MNI INTERVIEW: Housing Inflation To Fall Slowly-Fed's Mehrotra

Minneapolis Fed economist Neil Mehrotra discusses the housing inflation outlook.

MNI (WASHINGTON) - Slower U.S. rent growth for new leases is likely to take some months longer to work its way through CPI housing data, while uncertainty over whether housing inflation will return to pre-pandemic levels raises concern about the persistence of overall inflation, Neil Mehrotra, an economist at the Federal Reserve Bank of Minneapolis told MNI.

New lease rent trends filter through to CPI measures more slowly than previously thought – with a lag of about 19 months, according to new research from Mehrotra and co-author Alisdair McKay. That means the contribution of housing to overall inflation will stay outsized well into 2025. 

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MNI (WASHINGTON) - Slower U.S. rent growth for new leases is likely to take some months longer to work its way through CPI housing data, while uncertainty over whether housing inflation will return to pre-pandemic levels raises concern about the persistence of overall inflation, Neil Mehrotra, an economist at the Federal Reserve Bank of Minneapolis told MNI.

New lease rent trends filter through to CPI measures more slowly than previously thought – with a lag of about 19 months, according to new research from Mehrotra and co-author Alisdair McKay. That means the contribution of housing to overall inflation will stay outsized well into 2025. 

Keep reading...Show less