U.S. Home-Price Surge Looks Much Tamer in Government CPI Report
This article is for subscribers only.
While most gauges of U.S. rents and home prices are surging -- some at double-digit rates -- the government’s consumer price index shows housing costs rising at a much tamer pace, a disparity that’s getting some high-profile attention.
“Rent of shelter” -- a category that makes up a third of the CPI basket of goods and services prices -- is up 3.9% from November 2020. That’s the most in 14 years but still pales in comparison to many private-sector metrics. That’s caught the attention of prominent voices like Lawrence Summers and Bill Ackman.