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Housing Market: Higher Rents Could Push Long-Term Inflation Permanently Over 2%
- Autor: Vários
- Narrador: Vários
- Editor: Podcast
- Duración: 0:05:17
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Sinopsis
We’ve been hearing a lot about the risk of inflation lately. With government money flooding into the market and the economic recovery in high gear, we’ve already seen some price jumps. The Federal Reserve has tried to calm fears by telling us that prices will settle back down, but rent prices are probably not among them, and higher rents, or what’s known as shelter inflation, is a big part of the Consumer Price Index. A recent Business Insider blog makes a case for rent growth as a catalyst for inflation -- that rents are starting to go up after a decline during the pandemic, and are not likely to “settle back down.” (1) The blog cites Morgan Stanley economists who say that rent prices are “flashing signs of more persistent inflationary pressures” and Goldman Sachs economists who say “special factors that suppressed inflation during the pandemic” have eased up. They feel that as other prices rise and pull back because of the reopening, that rents will continue to accelerate and will likely bring permanent inf