U.S CPI rose 3.12% yoy and 0.10% mom. Core CPI declined further to 4% yoy and 0.28% mom. There has been a lot of discussion around the Shelter Component of U.S Consumer Price Inflation. The Shelter component is a category under the Services Inflation. The Shelter component contributes 32.50% to the Headline CPI. The trajectory of Shelter Inflation has an important bearing and hence it is important to understand the idiosyncrasies in calculation methodology. The Shelter component is primary divided into 4 main parts mentioned below and the weightage mentioned on the right side. Rent of Primary Residences 7.30% Owner's Equivalent Rent (OER) 23.80% Lodging Away from Home 1% Tenants and Household Insurance ...
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