Wednesday, July 22, 2009

June CPI Numbers Released

It's a week late but I am finally getting out the June CPI numbers for our region. The year over year continues to show a drop and for June it was 2.2%. Investors continue to be more worried about a recession than inflation.

The CPI increased on a monthly basis from May to June by .6% and that is higher than we have seen in some months. The monthly increase is mainly made up of increases in the energy portion of the index and not by food or other consumer goods. Another sign that inflation is not currently a threat.

What all of this means for commercial real estate is that any annual increases that were set to occur for June won't happen unless there was a minimum annual increase specified in the lease.

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