MNI (WASHINGTON) - U.S. housing inflation could take a while longer to normalize, Cleveland Fed President Beth Hammack said Thursday, citing bank research showing rents for new tenants are passed through only gradually to existing tenants and official shelter indices. "This raises the possibility that housing services could remain elevated for a while," she said. 

Housing inflation has declined from its peak, but has stayed higher than analysts expect based on market rents. (See: MNI INTERVIEW: More Cuts Before Fed Fine-Tunes Neutral -Mester)