According to Zillow's Observed Rent Index, rental price increases peaked in February 2022 at 17.04% and have been dropping off drastically ever since to 9.82% as of October 2022. Zillow stated that there can be a lag of 6-12 months before its data is reflected in the Shelter CPI index. Shelter CPI weighs a third of total headline inflation and half of core inflation. Once the heavy drops are computed into the shelter index, we should see inflation possibly falling below 4% by the middle of next year and it can possibly accelerate to under 3% by the end of 2023.
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