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Thursday, April 13, 2023

The Daily Money: Inflation slowing but still high. You can blame rising rent prices.

Housing costs – which make up 40% of the consumer price index – were up 8% year-over-year.
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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Thu Apr 13 2023

 

Bailey Schulz Money Reporter

@bailey_schulz

Happy almost-Friday, Daily Money readers. It's Bailey Schulz here with the day's top headlines. 

We learned yesterday that inflation is slowing but still high, with the consumer-price index up 5% year-over-year in March. For context, the Federal Reserve's goal inflation rate is 2%.

You can blame skyrocketing rent prices, according to the Bureau of Labor Statistics, which reported that housing costs – which make up 40% of the index – were up 8% during the same time period.

"This more than offset a decline in the energy index, which decreased 3.5% over the month as all major energy component indexes declined," the Bureau of Labor Statistics noted in a Wednesday report.

The competitive housing market, higher mortgage rates and a shortage of inventory have contributed to an 18% spike in the U.S. median rent price over the past two years. Most of the significant yearly increases are in Southern and Midwestern states. 

The good news? Newly constructed apartments are expected to hit the market this year, which should lower rental prices.

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The future site of the Laureate Apartments in Derwood, MD is visible as it nears completion Wednesday, Jan. 18, 2022.

Josh Morgan, USA TODAY

The Biden Administration pushes for more EVs

President Joe Biden's administration on Wednesday proposed historically tougher greenhouse gas emission standards for cars and trucks sold in the U.S that would take effect in 2027. 

The move could lead to electric vehicles accounting for as much as 67% of all new sales in less than a decade, compared with just 6% of new sales in 2022.

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

High end apartment in the city.

While consumers paid less for gasoline and grocery housing costs went up 8% during the same time period.

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Sarge is a 14-year-old Belgian Malinois.
 

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Florida welcome sign.
 

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