The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in February on a seasonally adjusted basis, a slight increase from January’s 0.3 percent rise.
Over the past 12 months, the all items index has increased by 3.2 percent before seasonal adjustment. Core inflation (all items excluding food and energy) has risen 3.8 percent over the past 12 months.
In a briefing following the publishing of the report from the Bureau of Labor, CBRE noted, “We expect that February’s CPI reading will reinforce the Fed’s cautious approach to lowering interest rates and push the likelihood of an initial rate cut from May to June.”
“Real estate investment activity will remain sluggish in the first half of 2024 amid bond market volatility and high interest rates before beginning to pick up in the second half,” CBRE added.
The shelter index has been responsible for a large share (roughly two-thirds) of the past 12-months of core inflation, having