Comments on: Inflation Eased Despite Sticky Housing Costs https://eyeonhousing.org/2023/03/inflation-eased-despite-sticky-housing-costs/ National Association of Home Builders Discusses Economics and Housing Policy Thu, 30 May 2024 18:21:22 +0000 hourly 1 By: John White https://eyeonhousing.org/2023/03/inflation-eased-despite-sticky-housing-costs/#comment-2116951 Tue, 14 Mar 2023 18:29:58 +0000 https://eyeonhousing.org/?p=33201#comment-2116951 There is a good reason that consumers do not feel that inflation is easing despite the media headlines. That reason is the inflation rate simply compares the increase or decrease in inflation since the same month of the previous year. In a multi-year period of inflation as we are now experiencing, I feel the reported rate is distorted when the rate reported in the previous year was high. I believe that comparing the inflation rate for the same month during the entire period of inflation yields a more reliable indicator of the impact on consumers. Here is an example:

Month Year Inflation

October 2021 7.70%
2022 6.20%
Total 13.90%

November 2021 7.10%
2022 6.80%
Total 13.90%

December 2021 7.00%
2022 6.50%
Total 13.50%

January 2022 7.50%
2023 6.40%
Total 13.90%

February 2022 7.90%
2023 6.00%
Total 13.90%

As you can see, the combined rate is practically unchanged.
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