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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. The Eccles Building, which houses the U.S. Federal Reserve in Washington, D.C.…