WASHINGTON (CBS DC)– Living in the United States is getting costlier and that’s partially due to rent increases.
Bloomberg reports the cost of living in June rose for the fifth consecutive month. A Labor Department report released Friday showed a consumer-price index increase of 0.3 percent.
Rent prices rose to their highest in almost two years as more Americans opt for short-term living situations over owning a home. However, global growth and a strong dollar may prevent inflation from meeting the Federal Reserve’s 2 percent limit this year.
“Disinflationary pressures are ebbing fairly quickly,” Ryan Sweet, a senior economist at Moody’s Analytics Inc., told Bloomberg. Sweet says this points to inflation moving toward the Fed’s target over their medium term.
Over the past 12 months, prices rose 0.1 percent. The core index climbed 0.2 percent in June, excluding food and fuel. The index was up 1.8 percent from June 2014.
About two-thirds of the core rate increase was due to rising rent, according to Bloomberg. There was a 0.4 percent increase in rents of primary residences. This marks the highest increase since August 2013.
Federal officials said their target goal for projected inflation most likely wouldn’t be met until 2017 at the earliest. Economists surveyed by Bloomberg say Fed officials could announce an interest-rate increase as early as September.
The Labor Department’s estimate of wholesale pricing, which includes 75 percent of U.S. goods and services, rose 0.4 percent in June from the prior month.