NAR Chief Economist Lawrence Yun: ‘Consumer prices are still rising too aggressively’

by Emily Marek

The consumer price index is rising too quickly, according to NAR Chief Economist Lawrence Yun.

The CPI has risen 8.3% in the past year, while hourly earnings have only risen 5.2%. This means the standard of living in the United States is decreasing.

“Consumer prices are still rising too aggressively and will force the Federal Reserve to take an even more hawkish stance to fight it,” Yun said in a written statement.

Rising rent prices have driven up inflation, which has gone up 6.7% compared to last year. According to Yun, rent costs aren’t likely to go down any time soon. “Rent prices look to accelerate in the near term as rental demand remains exceptionally high from ongoing job additions and higher mortgage rates forcing people out of the home buying market,” Yun explains. “The one-month gain in rent was 0.77%, which translates into a hefty 9.6% annualized rent gain.”

Yun also notes that stock market declines have decreased overall net wealth, though real estate wealth has increased by $1.2 trillion.

“Too much spending with inadequate supply causes inflation,” Yun says.

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