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/?=~~^^~~◃