Inflation slowed in June, but housing costs remained elevated for many Americans.

The Bureau of Labor Statistics’ Consumer Price Index (CPI) data revealed that shelter costs increased 0.4% in June, a decrease from 0.6% in May but a greater increase than the 0.2% increase in total consumer prices.

Inflation rose by 3%, the lowest level since March 2021, while housing costs grew by 7.8%. The housing cost increase in June was the lowest since December 2022.

The rent index was outpaced by a 0.5% month-over-month and 8.3% annual increase in rent prices.

However, these expenditures were lower for tenants than earlier in the year.

The majority of tenants are still burdened by substantial costs, despite the moderation in housing inflation.

Rent, OER, out-of-home accommodation, and insurance account for 35% of the CPI aggregate.

The National Association of Realtors’ chief economist, Lawrence Yun, stated that the one-month rent increase of 0.5%, or 5.8% on an annualized basis, was the weakest increase in seven months, indicating that rents will continue to ease in the coming months.

The weights in the container reflect people’s purchasing patterns, and housing prices have risen so much in recent years that the weight of housing has increased.