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FACT BRIEF

Are housing costs driving inflation in 2024?

By Miles Guerin
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YES

The rise in housing costs has been a major source of overall inflation, which was 2.9% in the 12 months ending in July 2024.

The Bureau of Labor Statistics' shelter index, which includes housing costs for renters and homeowners, rose 5.1% in the 12 months ending in July 2024.

Housing costs account for 36.3% of the Consumer Price Index. This represents the largest share of any category.

The Consumer Price Index is an ongoing measure of price changes in a representative "basket" of consumer goods and services.

The only category in the CPI that increased at a greater rate was transportation services at 8.8%.

The Bureau of Labor Statistics reports that the rise in housing costs over this period accounted for over 70% of the total 12-month increase in the core CPI – that is, the CPI excluding food and energy prices, which rose 3.2% in this 12 month period.

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Sources
US Bureau of Labor Statistics Consumer Price Index - July 2024
US Bureau of Labor Statistics Consumer Price Index
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