What Inflation Means for Investors

Written By Christian Desnoes

New CPI Data Comes In Higher Than Expected; Takeaways For CRE​

  • Inflation Still Cooling Annually, But Monthly Figure Climbs

    • CPI fell 30 basis points annually, but rose 40 basis points from December to January, sending a mixed message to markets

    • This shifted Wall Street’s expectations for Fed rate cuts, likely pushing the first cut farther into 2024

  • Federal Reserve Expected To Slow Play Rate Cuts

    • At the start of the year Wall Street expected the Fed Funds Rate to fall roughly 125-150 basis points before year-end

    • Now the projections suggest the overnight rate will drop just 75-100 basis points this year

  • Profitable Opportunities Available At The Property Level

    • Although the expectation gap has begun to narrow as property prices have dropped, the market is still in a recalibration process

    • Today’s opportunities are best seen when looking to the future, consider the best positioning over a longer time horizon

*Sources: Marcus & Millichap Research Services, BLS

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Christian Desnoes
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