Economists' Outlook

Housing stats and analysis from NAR's research experts.

Latest Consumer Price Inflation (November 2015)

  • There was a slight uptick in the broad consumer inflation measure in November. More interesting is the housing components, which continue to show high figures. Housing shortage still persists and this condition will jack-up the broad inflation rate in 2016. The Fed then will have to raise interest rates few additional times.
  • Numerically, the broad CPI inflation rose 0.4 percent from one year ago, though less than one percent it is the highest of the year. Directionally therefore some upward shift could be developing. One key contributor to the rise is that renters’ rents are rising at 3.6 percent and homeowners equivalence rents are rising at 3.1 percent. This high rate is a reflection of housing shortage. Homebuilders are still sluggish in putting up new homes so the shortage and high housing costs will likely continue into 2016.
  • Based on trends and assumption of no further price declines in gasoline prices in 2016, the overall CPI could surpass 2 percent and possibly reach 3 percent. That means, the Federal Reserve will likely raise interest rates two or three times in 2016.
  • On other matters, don’t smoke. Smoke products are rising by 3.7 percent. Those who have suffer smoke related illness, doctor fees are accelerating, now rising by 3.1 percent. For more serious issues, hospital fees are rising even faster at 4.7 percent.
  • For holiday shopping, women’s apparel prices are lower this year by 3 percent (no price discount on men’s clothes); while electronic products where prices have fallen by 6 percent.


Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.


Comment Policy

The opinions expressed in reader comments sections on this website are those of the reader and not NAR or REALTOR® Magazine.

About Economists' Outlook

Visit this blog daily to see what NAR experts are saying about the economy, the housing market, and other factors that will impact your business.

Housing Minute

Housing Minute is a monthly video series highlighting the latest housing data from the National Association of REALTORS® in a minute or less.