May CPI Moderates as Rent/OER Continue to Cool

In May, inflation eased more than expected, driven by a gradual decline in rental costs as new apartment construction surged to a 40-year high. This increase in housing supply is significantly cooling rent inflation, underscoring the critical role of ongoing construction in stabilizing the market.

One of our favorite economists, Jay Parsons, summarizes today's CPI reading here:

https://www.linkedin.com/posts/jay-parsons-a7a6656_cpi-inflation-housing-activity-7206647752330539008-MBMb?utm_source=share&utm_medium=member_desktop