--- title: Rising Rent and Homeownership Costs Are Keeping Inflation Elevated description: Rent and home prices are rising faster than inflation, month after month, according to the Bureau of Labor Statistics' Consumer Price Index. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-02-14T17:25:05.000Z' modified: '2024-01-10T14:35:40.000Z' section: Housing tags: - home prices - News - Rent word_count: 292 canonical: https://money.com/rising-rent-home-costs-high-inflation/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Man looking up at apartment with inflation graph in the back](https://img.money.com/2023/02/News-Housing-inflation.jpg) Consumer prices rose 6.4% on an annual basis in January, down from 6.5% the previous month, according to the latest Bureau of Labor Statistics (BLS) [report](https://www.bls.gov/news.release/pdf/cpi.pdf). It’s the seventh consecutive month this measure of [inflation](https://money.com/things-getting-more-expensive-inflation/) has declined. But price increases aren't retreating at the same rate across the board. Growth in [housing prices](https://money.com/housing-affordability-low-mortgage-rates-falling/) has regularly outpaced the headline inflation rate in the BLS's Consumer Price Index (CPI), and last month was no exception. ## What the data says - On the whole, the BLS’s shelter index — which tracks housing costs like [rent](https://money.com/renting-cheaper-than-buying-home-now/), monthly [homeownership costs](https://money.com/how-to-buy-a-house/) and other lodging costs — rose 7.9% between January 2022 and January 2023 and was up 0.7% between December 2022 and January 2023. - “The index for shelter was by far the largest contributor to the monthly all items increase, accounting for nearly half of the monthly all items increase,” the Bureau of Labor Statistics said in its report. - Rent prices were up 8.6% over that period, while housing costs for homeowners rose 7.8%. ## What’s next Inflation that’s still elevated will “likely bolster the Federal Reserve’s move to keep its foot on the economic brake pedal,” Zillow senior economist Orphe Divounguy said in email commentary shared with Money. That could mean [higher interest rates](https://money.com/fed-interest-rate-hike-february-2023/) and higher [mortgage rates](https://money.com/current-mortgage-rates/) in place for a longer period of time. Divounguy adds, however, that [falling rent prices](https://money.com/rent-to-fall-nearly-everywhere/) could mean lower inflation in the coming months. “With CPI rent making up 40% of core CPI,” he says, “the slowing rent growth we’re seeing will soon drag down CPI increases.” ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/rising-rent-home-costs-high-inflation/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "Rising Rent and Homeownership Costs Are Keeping Inflation Elevated" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/rising-rent-home-costs-high-inflation/#webpage", "url": "https://money.com/rising-rent-home-costs-high-inflation/", "name": "Rising Rent and Homeownership Costs Are Keeping Inflation Elevated", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-02-14T17:25:05.000Z", "mainEntity": { "@id": "https://money.com/rising-rent-home-costs-high-inflation/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/rising-rent-home-costs-high-inflation/#breadcrumb" }, "dateModified": "2024-01-10T14:35:40.000Z" }, { "@type": "NewsArticle", "headline": "Rising Rent and Homeownership Costs Are Keeping Inflation Elevated", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/02/News-Housing-inflation.jpg", "width": 2880, "height": 1920, "caption": "News-Housing-inflation" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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