San Francisco Fed study predicts decline in US housing cost inflation

Shelter inflation may fall to as low as 2% by the end of the year before returning to its pre-pandemic average of 3.3% by spring 2025. — Bloomberg

SAN FRANCISCO: Housing costs, the biggest contributor to US inflation, are on track to ease through the end of the year, returning to the pre-pandemic trend in 2025, according to new research from the US Federal Reserve (Fed) Bank of San Francisco.

“We project that shelter inflation will continue to decline over the next few months,” San Francisco Federal Reserve economists Oscar Jorda and Aren Yalcin wrote in a study published on the bank’s website.