The Congressional Budget Office (CBO) released its Budget and Economic Outlook for 2023 to 2033, which includes the consumer price index (CPI) figure that has historically been used by HUD to determine income limits for LIHTC properties.
CBO’s current projections of inflation for 2023 are substantially higher than last spring’s projections. In May, CBO projected that inflation in the CPI-U would be 2.7 percent in 2023, whereas the current projection of inflation for that index in 2023 is 4.0 percent.
| Annual Average | ||||||
| 2022 | 2023 | 2024 | 2022-2026 | 2027-2032 | Overall 2022-2032 | |
| Feb. 2023 CPI Estimate | 7.5 | 4.0 | 2.4 | 3.6 | 2.2 | 2.9 |
| May 2022 CPI Estimate | 4.7 | 2.7 | 2.3 | 2.9 | 2.4 | 2.6 |
Novogradac used CBO’s CPI estimate to update its 2023 national median income to $96,200 – a 6.9 percent increase over the 2022 figure.
