[ No headline ]

Inflation may ease a tad next January.

No, we're not economic whiz kids; Uncle Sam is changing the way his elves calculate home ownership costs. Currently, these costs make up about 26 percent of the consumer price index and include increases in the asset value of a home. This tends to overstate the cost of ownership. So the feds have been keeping tabs on rents paid by tenants in houses similar to those owned by their occupants. They'll use this to adjust the ownership component. After the change in January, home ownership will only account for about 15 percent of the CPI.

The impact? July's annualized inflation rate was 6.5 percent. Using the new formula, it would have been 6.4 percent.m

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK