· for now, the fed is likely to maintain a “wait-and-see” approach. To be sure, shelter costs have slowed considerably. Shelter represents about one-third of the cpi — no surprise since it’s by far the biggest expense for most americans. · the united states faces a severe housing affordability crisis as a key component of post-pandemic inflation, with shelter costs now dominating overall price pressures. · across the country, there are indications that a growing number of americans have been turning to budget motels for shelter after a surge in rents and home prices in recent years left those on. Investors should prepare for a prolonged period of high rates and volatility, particularly in sectors sensitive to housing inflation. Here are five areas where households are feeling the pinch. · core goods prices, which exclude volatile food and energy, rose by 1. 5% in august, the fastest annual pace since may 2023. Meanwhile, housing inflation continued to show signs of cooling, matching the lowest level since october 2021. · the big increase in housing costs has pushed the cpi higher. · although inflation has eased, many americans say they still feel squeezed financially. The biggest chunk of the shelter component includes oer and rent — making up about 96% of the index.

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