[frankbreetz]

>>The index for shelter rose 0.4 percent in July, accounting for nearly 90 percent of the monthly increase in the all items index.

Shelter seems to be the most tightly coupled item to interest rates. This to me seems like this will create a more hawkish fed.

I have heard some people say that higher interest rates are causing housing to go up because people aren't moving or building houses, but I don't think the fed has the same opinions. I would think the fed would not like to have a 0% interest rate for some time seeing as how it messed up the housing market for a decade.

Best case we see little to no housing appreciation over the next 10 years and that will bring us back to normal. Hopefully we don't see an appreciation like we have the last 10 years, that would not be a sustainable system and would likely further deteriorate the american dream.

Food inflation seems to be doing well, so that is encouraging.

[breckenedge]

With Biden cutting off migration at the border, construction companies, particularly in the South, are going to have a hard time finding workers at prices that people are used to paying for labor. This will either raise the cost of new builds or delay them, leading to an even bigger shortage in supply.