PCE Measure of Shelter Finally Slowing YoY

Here is a graph of the year-over-year change in shelter from the CPI report and housing from the PCE report this morning, both through May 2023.

CPI Shelter was up 8.0% year-over-year in May, down from 8.1% in April, and down from the cycle peak of 8.2% in March 2023.

Housing (PCE) was up 8.3% YoY in May, down from 8.4% in April (April was the cycle peak).

Since asking rents are soft and Year-over-year Rent Growth Continues to Decelerate these measures will slow further in coming months.