Inflation Surprise Means More Pressure Ahead For Commercial Real Estate U.S. inflation stubbornly rose again last month — even as energy costs dropped — all but ensuring that the Federal Reserve Board will raise its benchmark interest rate by 0.75% at its meeting later this month. The Fed has already raised rates by 2% this year, but inflation has yet to come down: The overall consumer price index rose by 8.1% year-over-year in August and by 0.1% over July, the U.S. Bureau of Labor Statistics reported Tuesday. The prospect of further monetary tightening could have more profound effects on the commercial real estate sector than the last round of hikes, experts told Bisnow Tuesday. 
“Yes, this inflation report was a surprise. The increase of 75, maybe even 100 basis points, at the next meeting and then another 50 or 75 at year's end is not completely out of the realm of what's being expected,” Moody's Senior Economist and Director of…  Read the full story here. | 
