Last week's inflation numbers, which clocked in at 9.1%, will "certainly" impact interest rates which potentially increases recession risk—and it could also affect the flow of capital to different property types in different parts of the US.
That's according to Marcus & Millichap's John Chang, who notes that headline CPI inflation reached its highest level in 41 years, thanks in large part to energy prices,
"But if you strip out the cost of energy and food, just looking at core inflation, the picture is a bit more promising," Chang says. Core inflation was only 5.9%, and that's down 60- basis points from its peak in March. And "that tells me a lot," Chang says.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
