The latest Consumer Price Index (CPI) Housing costs showed that they eased to the slowest pace in February in over three years.
Shelter costs rose 4.2% from the previous year in February, slower than the 4.4% increase seen in January, and later than the 12-month minimum increase since December 2021.
Home expenses, which rose 0.3% in February, rose 0.3% from a monthly increase of 0.4% in January.
“Inflation in the shelter will be a welcome development for those who want further advances in inflation,” Jeff Schulze, head of economic market strategy at Clearbridge Investments, told Yahoo Finance in an email.
Economists have long been expected to see a slowdown in rent, a trend reflected in other data. The February inflation print could be the latest indication that a wider rent cooldown could eventually appear in CPI. BLS collects rental data every six months and is behind in reports.
The government said the rent index rose 0.3% in February, matching the January pace to 0.3%.
Meanwhile, the owner's equivalent rent prices increased by 0.3% that month, as they remained unchanged from the 0.3% increase in January. The owner's equivalent rent is the estimated rent paid by the homeowner if he rents the property.
