CPI Update 2023: New Allowable Increases Go into Effect Under State Law (A.B. 1482)
CPI Update 2023: New Allowable Increases Go into Effect Under State Law (A.B. 1482)
The good news for those of us subject to statewide rent control under Assembly Bill 1482, we are entitled to some increase in rent, albeit less than last year’s increase. Unfortunately, we continue to experience inflationary pressures and labor shortages leading to rapid price increases for all goods and services.
Under Assembly Bill 1482, annual rent increases are limited to the greater of (i) CPI + 5%, or (ii) 10%. This year’s CPI for the Los Angeles Area is 3.8%, which makes the maximum allowable annual rent increase under state law equal to 8.8% (5% plus CPI of 3.8%).
During the week of May 8, 2023, the U.S. Department of Labor and Statistics published the updated Consumer Price Index (CPI) for major urban areas. The California (as a whole) CPI is still pending from the California Department of Industrial Relations; however, CPI data is now available for urban areas across California such as Los Angeles-Long Beach-Anaheim, Riverside-San Bernardino-Ontario and others. The following is the updated CPI chart appearing on the AAGLA.org website under the “News and Information” tab.
