Visualising Housing Prices and Inflation

August 12, 2022

Do housing prices feed into inflation?

Often, rising housing prices lead to higher rents, and rent contributes to inflation. In fact, shelter makes up over 30% of the consumer price index (CPI), a common inflation measure.

Still, the relationship is not 1:1. Historical data has shown a lag between housing prices and the CPI, while other factors—such as input prices and demand—impact their relationship.

This Markets in a Minute from New York Life Investments (Via Visual Capitalist) charts housing prices and inflation over the last 30 years.

See full article at advisor.visualcapitalist.com/visualizing-housing-prices-and-inflation/?=~~^^~~◃

“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” – Mark Twain

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