Inflation Archive

Falling Import Prices Help Contain Inflation and Interest Rates

Due to the strengthening in the U.S. dollar the prices of imported goods are falling.  That is helping the overall consumer prices to be tame.  Low inflation means interest rates can remain low for a longer period. In the...

Inflation Rate in 2014

Consumer prices fell in December, yielding a low one-year 2014 inflation rate of only 0.7 percent.  However, renters are getting squeezed.  Rents increased at the fastest clip since 2008 with a 3.4 percent jump in 2014.  Home prices are...

The Latest on Consumer Inflation

Lower gasoline prices are contributing to low overall consumer price inflation.  Low inflation in turn means interest rates can continue to remain at rock bottom rates.  However, one weighty component in consumer prices shows an accelerating trend:  namely, rents...

Inflation and Mortgage Rates

There is no consumer price inflation to speak of – as of yet.  Even the expectation of future inflation rates remains low.  This is the key reason as to why mortgage rates remain at historically low rates and why...

The Consumer Price Index, Spending, and Inflation

In speaking with REALTOR® members, I often hear a complaint that the government’s inflation statistics do not reflect reality. Recent data show that the inflation rate for consumer prices has increased about 2 percent above a year ago, but...