Comments on: Inflation Remains Near 40-Year High https://eyeonhousing.org/2022/09/inflation-remains-near-40-year-high/ National Association of Home Builders Discusses Economics and Housing Policy Thu, 30 May 2024 18:09:32 +0000 hourly 1 By: John P White Jr https://eyeonhousing.org/2022/09/inflation-remains-near-40-year-high/#comment-2007903 Tue, 13 Sep 2022 20:27:41 +0000 https://eyeonhousing.org/?p=32387#comment-2007903 If inflation during the same month of the previous year was high, it may appear that inflation during the current reporting month has moderated. For example, the inflation rate against which this report (8.3%) was compared (August 2021) was 5.25%. The cumlative affect consumers are likely feeling is price increases of 13.55% since August 2020.

September 2022’s report will be compared to the inflation rate last September, 5.39%.

The bad news for consumers is prices are unlike to ever return to 2021 levels as business taxes, wages and the cost of transportation of good have all increased dramatically.

]]> By: Greg Peterson https://eyeonhousing.org/2022/09/inflation-remains-near-40-year-high/#comment-2007784 Tue, 13 Sep 2022 15:15:23 +0000 https://eyeonhousing.org/?p=32387#comment-2007784 Indexing rent to core CPI misses the big picture. You should be indexing rent to increases in HH income in order to give you an “affordability” measure. Bottom line, in the last 35 years rent growth has dramatically outpaced household income growth. Rent to income ratios today are almost double what they were in 1985.

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