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Tuesday, February 13, 2024

YoY Measures of Inflation: Services, Goods and Shelter

by Calculated Risk on 2/13/2024 09:00:00 AM

Here are a few measures of inflation:

The first graph is the one Fed Chair Powell had mentioned when services less rent of shelter was up around 8% year-over-year.  This declined and is now up 3.6% YoY.

Services ex-ShelterClick on graph for larger image.

This graph shows the YoY price change for Services and Services less rent of shelter through January 2024.

Services were up 5.0% YoY as of January 2024, unchanged from 5.0% YoY in December.

Services less rent of shelter was up 3.6% YoY in January, up from 3.4% YoY in December.

Goods CPIThe second graph shows that goods prices started to increase year-over-year (YoY) in 2020 and accelerated in 2021 due to both strong demand and supply chain disruptions.

Durables were at -1.6% YoY as of January 2024, down from -1.2% YoY in December.

Commodities less food and energy commodities were down 0.3% YoY in January, down from up 0.1% YoY in December.

ShelterHere is a graph of the year-over-year change in shelter from the CPI report (through January) and housing from the PCE report (through December 2023)

Shelter was up 6.1% year-over-year in January, down from 6.2% in December. Housing (PCE) was up 6.4% YoY in December, down from 6.7% in November.

This is still catching up with private data.  The BLS noted this morning: "The index for shelter continued to rise in January, increasing 0.6 percent and contributing over two thirds of the monthly all items increase."

Core CPI ex-shelter was up 2.2% YoY in January, unchanged from 2.2% in December.