Housing Drives Much of the Inflation Increase in March
By Nick Trombola April 10, 2024 10:04 am
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Inflation rose higher this past month than at any point since September 2023, and housing and gas prices were largely the culprit.
Prices climbed 0.4 percent in March, the same as in February, according to a new monthly report from the U.S. Bureau of Labor Statistics. The figure is well above the Federal Reserve’s inflation rate target of 0.2 percent. Inflation was also up 3.5 percent unadjusted over the past 12 months.
Continually rising costs of gas, rents and mortgages accounted for over half of the monthly increase in the inflation index, the agency said. Gasoline prices rose 1.7 percent last month, while the cost of housing rose 0.4 percent.
“I believe there is a heightened likelihood that the Fed may postpone its first interest rate cut longer than anticipated, further dimming the outlook for multiple rate cuts this year,” Peachtree Group CEO and Managing Principal Greg Friedman said in a statement. “Interest rates will likely stay elevated until the Fed resolves whether 3% is effectively the new 2% target. Simultaneously, commercial real estate will continue to face massive headwinds as a higher interest rate environment will continue to recalibrate asset values and, in turn, open up new investment opportunities.”
This is a developing story and will be updated…
Nick Trombola can be reached at ntrombola@commercialobserver.com.
