– by New Deal democrat
Today is a travel day so I have to keep this brief.
On a monthly basis for January, prices rose 0.2% as measured by the FHFA house price index. But because that was far less of an increase in January last year, YoY house prices as measured by the FHFA index declined to +5.3%. This implies that by January next year OER as measured in the CPI will only be up about 2.1% – well within the Fed’s comfort zone:
Unfortunately, we still have at least several months to go before OER starts any kind of meaningful decline. Still, this is further evidence that the Fed continues to chase a phantom menace.
How “FHFA-CPI” using house prices rather than OER shows a sharp deceleration in inflation, Angry Bear, New Deal democrat.