The Daily Money: Disconnect between current rents and shelter inflation data

The CPI program collects rent data from each rental unit every six months since rents are locked in place for a given lease term.

Advertisement Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Wed Jun 14 2023 Swapna Venugopal Ramaswamy |  National Housing and Economy Correspondent @SwapnaVenugopal Happy Hump Day, dear The Daily Money readers. If you breathed a sigh of relief at the news of recent rent price drops, you might have been surprised by yesterday's CPI report numbers on the increasing cost of shelter as the biggest contributor to inflation. The overall shelter costs were up 8% from a year ago and rent inflation stood at 8.7%, according to the Consumer Price Index report, which also shows that annual increase in inflation  has fallen for the 11th straight month and is now at the lowest level in more than two years. Even more perplexing: Nationwide, rents declined 1% from a year earlier in May−the largest drop since 2020−as a building boom increased supply and economic uncertainty cooled demand, according to Redfin. One reason for the disconnect: The way in which the Bureau of Labor Statistics collects its data. Rental inflation xeni4ka / iStock via Getty Images The CPI program collects rent data from each rental unit every six months since rents are locked in place for a given lease term. It also allows for a larger sample, according to the BLS. However, in a fast changing, volatile housing market, that measure can seem outdated compared to private indexes that look at current leases. "At the beginning of this year, landlords were beginning to drop rents. And that means that leases that are coming online now in June, for example, would reflect those lower rents. If rents indeed are coming down in a systematic way, we should see that reflected in the CPI as we head through the summer," says Bright MLS Economist Lisa Sturtevant. Undocumented women are among the lowest paid Undocumented women workers earn less than women overall and less than undocumented men, making them one of the lowest paid groups in the U.S., according to a new report. But how low the wages are depends on where they live and the type of jobs they have, according to a new report by the Gender Equity Policy Institute (GEPI).  The study's most surprising finding, according to author Natalia Vega Varela, was that such gender pay gaps vary enormously between California, New York, Florida and Texas, the states with the largest populations of undocumented women. Supportive policies in California and New York may have raised pay for undocumented women in those states, she said.   New York emerges as the state paying the highest wages among states that employ them the most. Undocumented women make $22,000 more than in Texas and $21,000 more per year than in Florida, according to the report. Undocumented women in New York make $11,000 more than their counterparts in California.  📰 More stories you shouldn't miss:📰 Fed meeting live updates: Will there be another interest rate hike or pause? What to know. Quarterly taxes due date is coming up. Here's what you should know About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. How will the Fed's decision affect mortgage rates? In a fast changing, volatile housing market, the CPI report can seem outdated compared to private indexes that look at current leases. READ MORE Advertisement Undocumented women are among the lowest paid. A new study explains why A new study shows how the kinds of jobs held by undocumented women, as well as the states in which they live, drive pay disparities. 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READ MORE Instant Pot parent company files for bankruptcy The kitchen ware giant Instant Brands filed for Chapter 11 bankruptcy protection as consumer habits change since early pandemic days. READ MORE As inflation shrinks, so does Social Security's COLA for 2024. Most Americans cheer cooling inflation, but Social Security recipients worry COLA for 2024 could end up less than a third of 2023's 8.7% increase. READ MORE Chrysler recalls over 331,000 Jeep Grand Cherokee SUVs: Check here Chrysler is recalling more than 331,000 of its Jeep Grand Cherokee SUVs because rear coil springs may have been incorrectly installed. Check here. READ MORE EV charging failures abound: Report finds issues with public EV charging J.D. Power found 20.8% of EV drivers experienced charging failures or equipment malfunctions at public charging stations. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! 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