Real Rents Accelerate in October

In real terms, the index of rent of primary residences advanced 0.5 percent in October ?EUR??,,????'?????< Courtesy of NAHB

The 16-month run of steady growth in the Consumer Price Index months took a pause in October. It registered only the second month-over-month decline since June of 2010, a 0.1 percent decrease.

An easing in energy prices drove the decline in the all items index. The 12-month change remains strongly positive, with the all items index up 3.5 percent relative to October 2010. However, this represents a modest pullback from last month’s reported 3.9 percent increase.

The energy index fell 2 percent in October, driven by a 3.1 percent decrease in gasoline prices.

The 0.2 percent advance in October is the 13th consecutive increase in the shelter index. Overall, the shelter index has climbed 1.8 percent on a year-over-year basis.

The rate of growth of owners’ equivalent rent and rent of primary residence accelerated in October, up 0.2 percent and 0.4 percent, respectively, compared to 0.1 percent and 0.2 percent in September. In the past year, these subcomponents have risen 1.6 percent and 2.4 percent, respectively.

- Courtesy of NAHB