Is Inflation Pressure Starting to Subside?
Inflation Shows Signs of Easing
- CPI Inflation rose by 8.5% in July over last year, down from 41-year high in June
- Reflects recent drop in oil and gas prices
- Supply chains appear to be improving, should further help lower prices for goods
Will the Fed Change Course?
- Fed likely to raise rates by 50-75 bps on September 21
- Also expected to double monthly balance sheet reduction to $95B/month (Quantitative Tightening)
Considerations for CRE Investors
- Inflation resistant properties remain in favor
- Underlying demand drivers sustaining strong fundamentals for most property types
- Investors recalibrating strategies to higher interest rate climate; CRE market remains liquid
*Through July; 10-Year Treasury through August 10
Sources: Marcus & Millichap Research Services, BLS, Federal Reserve
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