If we can beat inflation like this despite rents lagging behind and increasing, it is truly deflation that will become the biggest risk into late 2023.
Reason being we are still to see rents within CPI reflect what we see via leading indicators.
We could wildly surprise down.
Reason being we are still to see rents within CPI reflect what we see via leading indicators.
We could wildly surprise down.
This is reflected in the 1yr breakeven.
We had a big question mark over the last weeks seeing expectations drastically reduced. We are starting to see responses.
We had a big question mark over the last weeks seeing expectations drastically reduced. We are starting to see responses.
Rental inflation will likely put massive pressure on the already deflating numbers.
Keep in mind, rents are 42% of the CPI.
Keep in mind, rents are 42% of the CPI.
Same view using the Zillow index, representing rents.
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