https://asiatimes.com/2021/11/us-inflation-more-horrible-than-washington-admits/
The US Consumer Inflation Report for October was horrible, showing a 12% annualized rate of price change. But it’s even worse than it looks. The shelter component of the index lags the more reliable private gauges of rent inflation. That means worse is to come.
Three US companies publish national rent indexes – CoreLogic, Zillow and Apartmentlist.com – and their readings of year-on-year rent inflation range from 9% to 16%. But the US Bureau of Labor Statistics reports a year-on-year rise in the rents of just 3.4%. Shelter represents a third of household expenditures according to the Consumer Price Index.
Before the COVID-19 pandemic, the private indices and the government measure of rent inflation moved in lockstep, albeit with lags in the latter reflecting the fact that not everyone’s lease expired at the same time. Given past lags, the rent increases should have shown up in CPI by now. So I really can’t explain the discrepancy.
Led by used vehicle prices, durable goods prices rose 12% over the twelve months through October, according to the official data. That can be blamed on the chip shortage, which constrained auto production and left consumers and car dealers in bidding wars for everything on four wheels. But the price of nondurable goods also jumped 10% over the past year. That’s simple demand-pull inflation: the combination of a $6 trillion giveaway to US consumers and enhanced jobless benefits that kept 2 million Americans out of the workforce left too much money to chase too few goods.