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Despite the Fed reiterating its “higher for longer” mantra and softness creeping into the U.S. macroeconomic data, equity markets shook off the April jitters. Nasdaq turned in a +1.1% gain on the week (ending May 10th), with the S&P 500 (+1.85%) and DJIA (+2.16%) showing even higher gains.Rent Inflation: Survey vs Rent RollUniversal Value Advisors
As we have noted in past blogs, the rental component of the CPI uses lagged data (red line on the chart), and also relies on its OER (Owners’ Equivalent Rent) survey (a single question to households in its survey which asks the dollar amount the respondent thinks their home would rent for in the current market). There is no observable data for this month-to-month comparison. But because we know from current market surveys that rents have been disinflating for the last five quarters (and are now deflating in some U.S. cities), and because of its large weight in the CPI, we know that CPI inflation will con …
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