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Rents, including what tenants pay to landlords and what homeowners implicitly pay to themselves, have very large weights in US measures of consumer price inflation. In this video, Dr. Richard Peach discusses how the Bureau of Labor Statistics estimates these two measures of rent inflation in the consumer price index, presents alternative estimates based on a different data base, and concludes by presenting evidence that lower income households face much higher rent inflation than do upper-income households.
Dr. Peach is a Senior Vice President in the Macroeconomic and Monetary Studies Function of the Federal Reserve Bank of New York.
