Last week's inflation numbers, which clocked in at 9.1%, will "certainly" impact interest rates which potentially increases recession risk—and it could also affect the flow of capital to different property types in different parts of the US.
That's according to Marcus & Millichap's John Chang, who notes that headline CPI inflation reached its highest level in 41 years, thanks in large part to energy prices,
"But if you strip out the cost of energy and food, just looking at core inflation, the picture is a bit more promising," Chang says. Core inflation was only 5.9%, and that's down 60- basis points from its peak in March. And "that tells me a lot," Chang says.
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