May 29, 2002 (The Editor’s Desk is updated each business day.)

Shelter inflation higher in 2001

Shelter costs rose 4.2 percent in 2001, after increasing 3.4 percent in 2000.

[Chart data—TXT]

Higher increases were calculated for rent of primary residence, owners’ equivalent rent of primary residence, and housing at school. The rent of primary residence index showed the largest increase in 15 years—4.7 percent, compared with 4.0 percent in 2000. The owners’ equivalent rent index rose 4.5 percent last year, following a 3.4 percent increase in 2000. 

Hotel and motel charges, which are part of shelter costs, decreased 0.8 percent in 2001, after rising 2.7 percent during the previous year. Before September 11, demand for hotels and motels was already weak. Following September 11, demand further decreased for hotels and motels, especially in New York, Las Vegas, and Orlando.

These data are produced by the BLS Consumer Price Index program. Annual percent changes are December-to-December changes. Details on the calculation of rent of primary residence and of owners’ equivalent rent of primary residence are in Consumer Price Indexes for Rent and Rental Equivalence. For additional information on consumer price changes in 2001, see "Consumer inflation lower in 2001: energy and apparel prices declined," by Todd Wilson, Monthly Labor Review, March 2002.

Related TED articles:

• Consumer durables prices dropped in 2001
• Continued acceleration in medical care inflation
• Clothing prices down again in 2001