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

Watch the Video Below