Economist John Mondragon on Shelter Inflation in Marketplace, August 10, 2023

“Rental data that the government uses to calculate the Consumer Price Index can be really sticky,” John Mondragon, Research Advisor at the San Francisco Fed tells Marketplace. “If you’re renting an apartment, and sign a typical one-year lease, your rent is going to be fixed for that year.” 

The Federal Reserve Bank of San Francisco (SF Fed) serves the public by promoting a healthy, sustainable economy, and supporting the nation’s financial and payment systems. With offices in Los Angeles, Seattle, Salt Lake City, Portland and Phoenix, the Bank serves the Twelfth Federal Reserve District, which includes one-fifth of the nation’s population and represents the world’s fourth-largest economy. As part of the nation’s central bank, the SF Fed informs monetary policy, regulates banks, administers certain consumer protection laws and acts as a financial partner to the U.S. government.