PCE Measure of Shelter Slows to 7.8% YoY in July

Here is a graph of the year-over-year change in shelter from the CPI report and housing from the PCE report this morning, both through July 2023.

CPI Shelter was up 7.7% year-over-year in July, down from 7.8% in June, and down from the cycle peak of 8.2% in March 2023.

Housing (PCE) was up 7.8% YoY in July, down from 8.0% in June, and down from the cycle peak of 8.4% in April 2023.

Since asking rents are slightly negative year-over-year, these measures will slow sharply in coming months.