Shelter inflation in the CPI has lagged real-world rent and housing price movements by quarters to years, meaning the CPI shelter component (40% of the index) continues to show 3-4% inflation even though rents are flat to declining and house prices are range-bound, creating a measurement lag that will take time to correct downward.
factualpending
Speaker
Michael LebowitzEvidence Quote
“rents are flat at best and declining in many, many locations. House prices are flattish. And yet, we're still showing 3, 4% in the shelter component.”
Created: 8/12/2026, 6:23:20 PM
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