An Inflation Conundrum

Are housing costs really slowing?

Analysts monitoring U.S. housing inflation have been doing a double take. On the one hand, such items as home prices and interest rates that presumably influence shelter costs have been picking up steam, with the tabs for similar-quality houses running about 5.5% above year-earlier levels. On the other hand, the housing costs component of the consumer price index is up only 2.5% or so year-over-year (chart).

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