The Consumer Price Index (CPI) report for February 14. 2023

The Consumer Price Index (CPI) report for February 14. 2023 was released earlier today. The Consumer Price Index (CPI) measures the changes in the prices of goods and services that households purchase. It is one of the most important indicators of inflation in the economy. In recent months, the CPI has been stagnant or decreasing slowly despite the Feds aggressively pushing rates. In January, the CPI is still at 6.4 percent which is only a slight slowdown from the 6.5 percent in December. This is a cause for concern, as it indicates that inflation is not showing signs of declining at the pace some might have hoped. The NY Times states that inflation "remains more than three times as fast as was typical before the pandemic".

In conclusion, high inflation can have significant impacts on the Fed's policies, interest rates, and real estate investors. The Fed may need to continue to increase interest rates to control inflation, which can impact real estate investors by making it more expensive to borrow money to purchase properties. Buyers are hopeful for cap rates to continue to decompress as monetary policies tighten even more in the months ahead.