After soaring throughout the first half of 2022, inflation is beginning to flatten, prompting speculation as to how the Fed will react at their September meeting. Headline inflation came in at 8.5%, down from last month's 9.1%, while core inflation numbers, which omits the oil, gas, and food sectors, held steady at 5.9% on a downswing from 6.4% in March.
And "that's good news," says Marcus & Millichap's John Chang. "Basically, things aren't getting worse."
Chang says he expects inflation to slowly come down over the next several months but doesn't think the improvements are tied to the Federal Reserve's rate hikes. He notes that supply chains are finally beginning to even out and the average length of time to ship goods from China is declining.
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