Ever-increasing housing costs are not only straining budgets – they also are the biggest contributor to the nation's bump in inflation, according to a report released Tuesday by the Bureau of Labor Statistics.
The consumer-price index, a widely used measure of inflation, moderated to 6.4% in January from a year earlier and down from 6.5% in December, the Labor Department said.
But housing costs – which make up 40% of the index – rose 0.7% for the month and increased 7.9% from a year ago.
“Home prices rose much faster than incomes over the past three years,” said Bright MLS Chief Economist Lisa Sturtevant. “The Fed’s rate increases, which have led to higher mortgage rates, have made the cost of buying a home even more costly.”
Swapna Venugopal Ramaswamy | USA TODAY