Not that we needed it, but last week we received another indicator that inflation was on the rise when the Bureau of Economic Analysis reported that the personal consumption expenditures price index rose 6.6% over the 12 months ending in March and up from a 6.3% annual inflation rate in February.
Inflation, in short, shows little sign of peaking as some economists had thought would happen by this time.
The question for the CRE industry is what impact this will have on assets and investment behavior. The truism that real estate is a good hedge for inflation is only partly true as some assets are better able to withstand price increases than others. Smart investors looking for a hedge know this and will place their capital accordingly.
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