CPI Housing Data Lags Real World Housing Data

CPI Housing Data Lags Real World Housing Data

CPI housing data as measured by Owners’ Equivalent Rent (“OER”), lags real world data by approximately six months given the methodology of the CPI Housing Survey. Therefore, softness in the housing market is unlikely to appear in CPI releases before December 2022. This is worth noting given that OER has a weighting of approximately 24% in the CPI basket.


Source: BLS; TEK2day

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