PCE Measure of Shelter Slows to 7.4% YoY in August

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 7.2% year-over-year in August, down from 7.7% in July, and down from the cycle peak of 8.2% in March 2023.

Housing (PCE) was up 7.4% YoY in August, down from 7.7% in July, and down from the cycle peak of 8.3% in April 2023.

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