While inflation remains near a 40-year high, consumer prices recorded their smallest monthly increase since August 2021 in April, according to the NAHB. The Bureau of Labor Statistics reported the Consumer Price Index increased by 0.3% in April on a seasonally adjusted basis, following an increase of 1.2% in March. According to the NAHB’s Eye on Housing blog, though gas prices have fallen since March, the pace of inflation is likely to stay high in the coming months due to the persistence of global supply chain disruptions.

Excluding the volatile food and energy components, the “core” CPI increased by 0.6% in April, following an increase of 0.3% in March. The food index increased by 0.9% in April, while the price index for a broad set of energy sources fell 2.7%.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 8.3% in April, following an 8.5% increase in March. The “core” CPI increased by 6.2% over the past twelve months, following a 6.3% increase in March. The food index rose by 9.4%, the largest annual increase since April 1981, and the energy index climbed by 30.3% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components).

The Real Rent Index remained unchanged in April, after increasing by 0.1% in March. Over the first four months of 2022, the monthly change of the Real Rent Index remained virtually unchanged, on average.