- Home prices and consumer expectations pointed to more inflationary issues on the horizon for the U.S. economy.
- The S&P/Case-Shiller index rose a staggering 19.1% year over year, the largest increase in the series' history going back to 1987.
- The Conference Board reported consumers now see inflation running at 6.8% 12 months from now.
- However, many Wall Street economists still see inflation falling off in the years ahead.
A home, available for sale, is shown on August 12, 2021 in Houston, Texas.Brandon Bell | Getty Images
Trends in home prices and consumer expectations that were part of data releases Tuesday pointed to more inflationary issues on the horizon for the U.S. economy.
The S&P/Case-Shiller index, which measures home prices across 20 major U.S. cities, rose 1.77% in June, bringing the year-over-year gain to a staggering 19.1%. That's the largest jump in the series' history going back to 1987.
For perspective, the biggest annual gain in prices prior to the subprime meltdown and 2008 financial crisis was the 14.4% increase in September 2005.
At the same time, The Conference Board reported that consumer inflation expectations ticked higher again, with respondents to the survey now seeing the metric running at 6.8% 12 months from now. That's up a full percentage point from a year ago, or 17.2% on a relative basis.