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Rents Rise Sharply, But Shelter Prices Mixed Overall

US DATA

In the key shelter categories: Owner equivalent rent came in at +0.3%, same as the previous 3 months, but unrounded it was the slowest since April (+0.254%). The same can't be said of Rent of Primary Residence, which accelerated sharply (+0.313% from +0.16% prior) to the fastest rate of growth since Jan 2020.

  • So a mixed report there: these categories will be very closely watched as they are expected to form the bulk of re-acceleration in inflation outside pandemic areas as the economy goes into 2022 (they form around one-third of the CPI basket and have been weak for most of the pandemic before a recent re-acceleration).

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