(Bloomberg) — A measure of rents in the U.S. posted the largest monthly increase in three decades, underscoring an increasingly high cost of living that’s poised to contribute even more to inflation this year.

According to Bureau of Labor Statistics data, 0.6% was added in February for the index of rent of primary residence. It is the largest increase since 1987. The acceleration was also seen in other shelter categories, accounting for over 40% of monthly increases in consumer prices that exclude food and energy.

CPI reports report rents in America with a delayed reporting period. That means they’ll contribute even more to inflation going forward, which already stood at a 40-year high in February. Prices are set to climb further as Russia’s invasion of Ukraine disrupts supply chains and availability of key commodities including oil.

“There’s still further strength to be seen,” Sarah House, senior economist at Wells Fargo (NYSE:) & Co., said of rent prices. “We don’t expect that to peak until maybe the third quarter of this year.”

In major metropolitan areas like New York, Atlanta and Chicago rents are rising. This is because landlords are trying to regain bargaining power in the wake of the pandemic. Nationwide, they’re increasing at a more modest rate, but the jump is still painful for many Americans whose wage gains are failing to keep up with inflation.

Data also revealed how much Americans pay for basic necessities like gasoline and food. Prices rose overall for February due to increases in these items as well as shelter. 

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