Edmund Simms's avatar
$30.7m follower assets
State-sponsored handouts for landlords.
While covid19 stimulus didn't drive inflation, it did push inflation-adjusted house prices up.

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Nathan Worden's avatar
Isn't shelter one of the largest components of the Consumer Price Index? Could we say that Covid19 indirectly pushed up inflation by raising real house prices?
Jensen Butler's avatar
@nathanworden QTNA! Good point
Edmund Simms's avatar
@nathanworden It is, but not the price. In America, the Bureau of Labor Statistics (BLS) estimates shelter cost inflation using the rent of primary residence (rent) and owners’ equivalent rent of primary residence (OER) indexes. The central part of this is a survey. Higher house prices only show up in inflation insomuch that mortgages and rents go up.
Nathan Worden's avatar
@valuabl The devil is in the details! Very interesting... so housing prices going up doesn't affect CPI, but rent and owner's equivalent rent does.

But didn't Covid19 stimulus payment put upward pressure on rents?



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