A steep increase in U.S. housing rental costs has boosted core inflation in recent months and could keep pushing it up through the end of the year, according to some economists. The Labor Department said on Wednesday the Consumer Price Index for May showed prices outside food and energy increased a steep 0.3 percent for the third month in a row. Behind that gain was a 0.6 percent jump in housing rental costs, also known as “owners’ equivalent rent” or OER. It was the largest monthly increase since August 1990.

Demand for rental properties has driven up rental prices across the country, raising the government’s estimate of owners’ equivalent rent. So far this year, core consumer inflation is running at a 3.1 percent annual pace, well above last year’s 2.2 percent rate. Over the past three months, price gains have accelerated to a 3.8 percent annual rate, in large part due to higher OER readings.

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