Real Rents Gain Some Ground
In September, much like August, the Real Rent Index regained some but not all of the ground it had lost since April. During the month, the residential rent component of the Consumer Price Index (CPI) increased at a (seasonally adjusted annual) rate of 3.4 %.

Although slightly below the average increase over the past year, this occurred against a backdrop of an overall CPI that actually declined for the second month in a row. The combination caused the real rent index (which adjusts rent increases for overall inflation) to move up from 107.6 to 107.9.

Earlier, the index had spent a good part of 2007 above the 109 mark. Among the major components of the CPI, the largest decline came in the traditionally volatile energy sector, but prices for apparel and transportation also declined somewhat. The recent weakness of the overall the CPI suggests that inflationary concerns will not prevent the Federal Reserve from maintaining its current stimulative monetary policy.

Based on seasonally adjusted Consumer Price Indices; U.S. Department of Labor, Bureau of Labor Statistics.The annual rates indicate what the percentage change would be if the current monthly rate were sustained over a 12-month period. The real rent index is the CPI for rent of primary residence divided by the CPI for all items and scaled so that January 1995 is 100. [ return to top ]