The Bureau of Labor Statistics reported Tuesday that housing costs contributed the most to inflation.
Compared to a year ago, shelter costs rose 8%, and rent inflation rose 8.7%, according to the Consumer Price Index report,
Which also shows that inflation has fallen for the 11th consecutive month and is now at its lowest level since 2008.
Especially if you've been following private-sector indices like Redfin, Rent.com, or Zillow, which show a softening, rent inflation sounds high.
According to Redfin, nationwide rents declined 1% in May from a year earlier as a building boom increased supply and economic uncertainty cooled demand.
Why is there a disconnect between current rents and CPI shelter costs?
Renters' and homeowners' housing costs are measured by the bureau, as well as lodging away from home and tenants' or household insurance.
However, the cost of renting a primary residence is the most important factor.