Did You Know?Economic InsightsTrending News

Inflation decelerates to 7.7% in October boosting likelihood Fed will slow down on interest rate increases

Economic Insights
Economic Insights from the MIAMI REALTORS Chief Economist

By MIAMI REALTORS® Chief Economist Gay Cororaton

It’s good news on the inflation front in October 2022. Headline annual inflation slowed to 7.7% while core inflation ─-a measure that strips out food and energy items ─ decelerated to 6.3%. On a month-over-month basis, core inflation decelerated to 0.3% from 0.6% in the prior month. Inflationary pressures are on the decline across a broad array of items: in food, apparel, vehicles, transportation, and medical services.

However, the pace of increase of prices of energy (fuel and gas) and shelter accelerated. Shelter expenditures, which account for about a third of consumer spending, rose 0.8%. Energy prices are largely outside the control of the Fed, but the cost of shelter – or rent growth—is within the Fed’s scope of control by way of the effect of mortgage rates on home sales and rent. Rent growth is already on the decline, and this will feed into lower inflation in coming months. Nationally, apartment asking rents for a 2-bedroom apartment were up just 5.7% nationally (17% annual rate in October last year), according to Apartment In the Miami-Fort Lauderdale-Pompano Beach metro area, asking rent growth has also slowed to 8% (29% annual rate in October last year).

October’s figures shows that inflationary pressures are on the decline, increasing the likelihood that the Fed could also slow on its rate increase, delivering a rate increase of  50 basis points (after four 75 basis point increases). The 30-year fixed rate mortgage is likely to hover at below 7% through the end of 2022.

Related posts

Businesses Lease Trophy Space to Stoke Return to the Office via @wsj  In #Miami, 830 Brickell increased rents since signing major tenants #Microsoft, #ThomaBravo & #CIFinancial

Daniel Zapata

Demand at ‘all-time high’: South Florida home sales up nearly 30%, condo sales up 50% in March

Liset Hanes

Miami is ranked the Healthiest City in America for the second consecutive year, according to the 2021 Mindbody Wellness Index.

Daniel Zapata

You are now leaving Miami Realtors

The link you have selected is located on another server. The linked site contains Information that has been created, published, maintained or otherwise posted by institutions or organizations independent of this organization. We do not endorse, approve, certify, or control any linked websites, their sponsors, or any of their policies, activities, products or services. We do not assume responsibility for the accuracy, completeness, or timeliness of the information contained therein.

You will be redirected to

Click the link above to continue or CANCEL