Finance & economics | Housing costs

America’s rental-market mystery

And why it may deter the Federal Reserve from cutting interest rates

A for rent sign advertising a row house in northeast Capitol Hill, Washington. USA.
Photograph: Getty Images
|Washington, DC

During the past few years of inflation, sceptics have insisted that governments are undercounting price rises—usually without much evidence to support their claims. But a new controversy in American economics has highlighted the challenge of accurately measuring prices. Only this time the implication points in the opposite direction, suggesting that inflation may prove a more stubborn foe.

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This article appeared in the Finance & economics section of the print edition under the headline “Spent on rent”

From the March 9th 2024 edition

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