Rent Disinflation – Final Piece of the Inflation Puzzle?

Insight of the Week

• Despite the Fed's progress in its fight against inflation, core CPI is still 4.3% with the backdrop of a tight labor market.
• The federal reserve has continued to retain a hawkish bias in its messaging by re-iterating the need for core inflation to move closer to its 2% target before it signals a policy pivot.
• In the August CPI report, we saw core goods inflation printing close to 0% with the core service component being solely responsible for keeping the overall core CPI above the Fed’s 2% target.