Rents are finally cooling off, bolstering Fed's case for cutting interest rates

After years of soaring housing costs, renters may finally have something to celebrate.

Economists say the most recent Consumer Price Index (CPI) report signals that inflation in the rental market is easing, giving millions of Americans some financial relief. And with rents markedly slower to ease than other spending categories, the downshift highlights that the ferocious inflation that slammed households starting in 2022 is relenting in earnest. 

"Rent was one of the key factors keeping inflation elevated," said Stephen Brown, an economist with investor advisory firm Capital Economics. "That's obviously quite a good sign that overall inflation is probably now heading back towards 2%."