According to Bloomberg News, a metric of measurement of rent in the United States documented the highest monthly increase in 30 years, signaling an enormously higher cost of living that is expected to push inflation even higher up in the current year.
The index for the primary residence rents surged by 0.6% in February compared to the last month, which was recorded as the most since 1987, as per data released on Thursday by the Bureau of Labor Statistics. It was a part of the acceleration in the broader shelter category that constitutes 40% of the increase in an index of consumer prices every month, excluding energy and food.
Rising rents in the US
Rents that have been on the rise in the United States for the last year are reportedly lagging in the CPI report, and it implies that they will escalate the inflation even higher, which already was at a 40-year high in February. The costs are slated to rise further due to the ongoing war between Russia and Ukraine, thereby disrupting the supply chains and availability of main commodities like oil.
Bloomberg News reports that the rents are escalating, especially in cities like Atlanta and New York, where the landlords enjoy their bargaining power after the initial days of the pandemic. However, in the other parts of the country, the rent increases at a modest rate. However, the jump is stressful for those Americans whose wages have not been able to keep pace with the rising inflation.
The data indicated just how much in excess the Americans are shelling out for the basics like gasoline and food. Adding to these items, together with shelter, I have been responsible for pushing up the cost of everything higher in February.
