Why US housing inflation relief may be short-lived


Supply constraints may risk secularly faster inflation. Reuters

US Federal Reserve (Fed) officials say they are confident housing inflation will finally cool in coming months, a key and long-awaited component of their effort to control overall price increases and secure their turn to interest rate cuts.

The real challenge on that front, however, may be just over the horizon when a pipeline of new apartments starts to run dry while the stock of single-family homes remains short, a recipe for future price pressure in a category accounting for about a third of the Consumer Price Index (CPI).

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