Wednesday, April 15, 2009

March CPI Drops by 1%

The latest Consumer Price Index numbers have been released and for our area, LA-Riverside-Orange County, the change from March of 2008 to March of 2009 was a drop of 1%. Month to month, the index dropped only 0.1% but analysts had predicted a rise of 0.1% to match last month's momentary rise. The decline is due in large part to energy costs and food costs dropping.

There seems to be little sign of impending inflation since demand for goods has stayed low. We saw March retail numbers released yesterday and there was a 1.2% decline in sales. This was also counter to what analysts were predicting.

Tenants who have no minimum caps on annual CPI increases should be happy with the latest results, however at some point the economy will turn around and there will be inflation concerns if the Fed doesn't watch the markets closely.

No comments:

Post a Comment