U.S. Housing Costs Rise Amid Inflation Decline

Housing costs have surged by 5.2% year-over-year and 0.5% month-over-month in August, despite a broader decline in inflation, with shelter costs contributing to over 70% of total inflation. This rise marks the largest increase in six months and is unexpected, given that the price of new leases peaked over a year ago. Economists attribute the delayed adjustment in shelter costs to fixed lease agreements, suggesting that inflation in this sector may remain elevated through 2025. Additionally, energy costs have risen significantly under President Biden's administration, with a reported 40.2% increase compared to a slight decrease under former President Trump. Despite this, a majority of economists believe Trump's policies could pose a greater risk of inflation than Biden's. The overall inflation rate fell to 2.5% in August from 2.9% in July, highlighting the complexity of current economic trends.