Housing Costs Slow but Remain High as Inflation Shows Signs of Easing
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Shelter inflation slowed in October, though housing costs remain high. The shelter index rose 0.4% monthly and 6.7% annually.
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Owner's equivalent rent and rents posted smaller monthly increases in October compared to September. But they remain elevated.
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Home prices hit another record high in August, signaling further pressure on shelter costs ahead. But rent growth is slowing as supply increases.
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Inflation will likely continue to ease, though the path down could be bumpy like the way up. The Fed will want to keep tightening optionality.
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Core CPI rose 0.3% in October, the smallest increase since September 2021, suggesting disinflationary pressure is building.