Template-Type: ReDIF-Paper 1.0
Author-Name: Ryan Niladri Banerjee
Author-X-Name-First: Ryan Niladri
Author-X-Name-Last: Banerjee
Author-Name: Denis Gorea
Author-X-Name-First: Denis
Author-X-Name-Last: Gorea
Author-Name: Deniz Igan
Author-X-Name-First: Deniz
Author-X-Name-Last: Igan
Author-Name: Gabor Pinter
Author-X-Name-First: Gabor
Author-X-Name-Last: Pinter
Title: Housing costs: a final hurdle in the last mile of disinflation?
Abstract: Inflation receded from recent peaks, but housing cost growth remains elevated. This strength reflects pandemic-induced changes in housing supply and demand which further aggravated existing pressures from long-standing housing shortages and demographic trends.
Strong growth of the housing component of inflation can be a concern for monetary policy because it tends to be more persistent than components related to other  services and goods, reflecting lags in measurement and infrequent changes in rents.
In the short term, rents and housing costs may rise after a monetary policy tightening if landlords pass higher financing costs to tenants, property developers reduce new supply or more households opt to rent rather than buy.
Length: 9 pages
Creation-Date: 2024-07-15
File-URL: https://www.bis.org/publ/bisbull89.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull89.htm
File-Format: text/html
Number: 89
Handle: RePEc:bis:bisblt:89