Insights from BLS Presentation on US Shelter Inflation

Thursday, 7 March 2024, 19:00

The US Bureau of Labor Statistics faced scrutiny over the January CPI report due to anomalies in the shelter component. Recent insights from a BLS presentation shed light on the unusual changes that impacted the rent and owners’ equivalent rent components. The data revealed a significant divergence between the two measures, raising questions about the persisting skew and its implications for future inflation calculations.
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Insights from BLS Presentation on US Shelter Inflation

US Bureau of Labor Statistics Presentation Highlights

The BLS recently addressed the anomalies in the January CPI report, focusing on the rent and owners’ equivalent rent components.

Rent vs. OER Divergence

  • Rent: Showed substantial variance from Owner’s Equivalent Rent (OER).
  • Key Factors: BLS identified reasons for the discrepancy.

The presentation pointed to the impact of OER unit-level weights shifts, especially in single-family detached units, on the inflation figures.

Implications for Future

  1. Important Sampling: The BLS highlighted the challenges in sampling and rent data collection.
  2. Feb & Beyond: Uncertainty looms over whether the skewed data trend will continue in upcoming reports.

Parker Ross delves into the complexities to provide clarity on the situation.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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