New numbers from the U.S. Bureau of Labor show that rapidly rising inflation is finally starting to slow down. Data released late last week shows that the Consumer Price Index, a key indicator of inflation, slowed to a 7.7 percent gain from the beginning of the year through October. The figure is lower than the 7.9 percent analysts had expected and less than last month’s figure, which was 8.2 percent in the year through September. The news comes a week after the Federal Reserve hiked benchmark interest rates for the fourth time in a row in a bid to slow inflation. Minus food and fuel costs, prices for consumer goods rose by 6.3 percent on an annual basis, a drop from last month’s showing of 6.3 percent.
The latest data is good news for Americans and indicates that the Fed’s actions may be finally starting to show results. “Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation,” said President Biden. On the day the numbers were released, the S&P 500 jumped 5.5 percent, the exchange’s best one-day performance since April 2020, while the Dow jumped 1,200 points on the news.
Commercial real estate has not been immune to the impacts of inflation. While the worry over what will happen to office buildings now that so many companies are allowing hybrid and remote work is still one of the biggest questions the industry is grappling with, for many in the industry, interest rates are just as much of a worry. Recent reports have shown that the impact of higher rates is starting to take its toll. Commercial real estate prices have fallen nearly 13 percent so far in 2022, according to Green Street data. On the multifamily side, a recent survey from the National Multifamily Housing Council found that investment sales stalled in the third quarter, driven by rising interest rates and economic uncertainty.
