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The same unit (1610 Annabellas Way Panama City Beach, FL) could have rented for $1500 in 2016. So rent has gone up about 2% a year since 2016.

I am not surprised housing is becoming more affordable here after the COVID price bubble with all time high prices set around early 2022 with locked in 30 year mortgage rates of about 3%.

The 30 year mortgage rate needs to come down to 6%, and sellers offering to buy up to 4 discount points to lower it to 5%. This will help a lot.

A few agents told me that every 1% increase in 30 yr mortgage rate would equate to a 10% drop in price; fortunately household income has increased at least 15% since early 2022.

I saw the Wolfman at Wolf Street explain that the reason for the low PCE is because of drops in financial services and recreational services.

How much of an influence or weighting do these aggregates have on PCE ?

Seems like even if they did not decrease much then PCE would have been not 2.1% annual but no more than 2.6% annual.

Here is food annual inflation for the last 5 years:

2021: 6.3%

2022: 10.4% (highest in recent years)

2023: 2.7%

2024: 2.5%

2025: 2.8%

Here are the rental inflation rates in the U.S. from 2015 to 2024:

2015: 3.57%

2016: 3.77%

2017: 3.81%

2018: 3.62%

2019: 3.71%

2020: 3.12%

2021: 2.25%

2022: 6.03%

2023: 7.95% (highest in this period)

2024: 5.11%

Here are the gasoline inflation rates in the U.S. over the last 10 years:

2015: -19.7%

2016: 9.1%

2017: 10.7%

2018: -2.1%

2019: 7.9%

2020: -15.2%

2021: 49.6% (sharpest increase)

2022: -1.5%

2023: -1.9%

2024: -3.4%

2025: -11.8% (latest data)

Here’s a summary of the monthly price trends for a dozen eggs in the U.S. over the last five years:

2021: Prices fluctuated between $1.50 and $2.00 per dozen.

2022: Prices surged, reaching $4.25 in December due to supply chain issues and avian flu outbreaks.

2023: Prices peaked at $5.12 in April before gradually declining.

2024: Prices averaged $3.17, showing some stabilization.

2025: Prices dropped to $2.52 in May, marking the lowest point in recent years

I would like to see the Fed keep rates higher for longer (it helps curb mal-investment) but I don't see how they can continue on this course without looking political given this latest data.

remember government always understates inflation. everything practically doubled here in price. and inflation is just slowing down, while trump screams for more inflation.

his policy of debt spend is a bad idea with big ugly omnibus bill

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Yes "stfu" in your post #5 I observe that firsthand looking at Schwab offering around 4.15% for a money market fund.

Its essentially pegged to the Federal Funds rate. So you earn at least 1.5% above guvmint reported annual inflation, and I agree is curbs "speculative investing" like flipping homes

"Fortwaye", I have been reading CBO is projecting the 2025 deficit to be $1.9 trillion, which is equal to Birdbrain Biden's 2024 deficit.

So this will be the first time since 2000 that the inflation-adjusted deficit did not increase from the previous year.

Also are you saying that inflation was under reported during the Birdbrain Biden administration ?

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Patrick says

What about the horrible increase in prices we were supposed to see from tariffs?

1. 80% of what we consume here we produce here.
2. Elasticity of demand. Prices are already at market. so increased producer costs mean less profit, not higher sales prices. Of course, that would lower stock prices.

I wonder why beef is not on that list.

Patrick says

I wonder why beef is not on that list.

Not that granular. Beef would be included in "groceries" and "restaurant meals." No beef category like there is no "vegetables" or "dairy" categories.

Beef is one of the best metrics for cost of living. Nothing more typical American dream than having a burger.

If the minimum wage was $4.35 iin 1995 and got you ~3lb of Beef for an hour's pay... then in 2025...

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CPI reported today for July 2025

annual inflation at 2.7%

yet core annual inflation (minus food and energy) is at 3.1%

at least annual inflation continues to remain below 3%

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