Wall Street Journal reporter Nick Timiraos has highlighted that housing’s contribution to inflation is currently slightly below pre-pandemic levels. U.S. core Personal Consumption Expenditures (PCE) inflation, which includes housing, hovered at or below 2% during the pre-pandemic period. The housing component, which accounts for around 15% to 18% of core PCE, has been a significant driver of inflation, but its impact is diminishing. This development could influence the Federal Reserve’s interest rate decisions at upcoming meetings in September and October.
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