The five-year breakeven inflation rate, which measures what bond investors think inflation will be over the next five years, stood at 2.6% at the end of February. That compares with 1.8% before Donald Trump was elected, according to a By the Numbers video by Jason Price, Americas head of logistics and industrial research at Cushman & Wakefield.
The figure may reflect the expectation that tariffs will drive up inflation, he said.
“Bond investors are certainly interpreting Trump's policy as being more inflationary,” said Price. “Clearly, if inflation starts to trend higher, that will complicate things for our industrial users and developers, U.S. consumers and for the Fed, although higher inflation expectations are still hovering in a reasonably low range.”
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