CPT - Fed Unfazed By Red-Hot Inflation

• U.S. equity markets retreated from record highs this past week, pressured by renewed COVID concerns and hotter-than-expected inflation data showing the fastest rise in consumer and producer prices in decades.
• The S&P 500 declined by 1.0% on the week while Mid-Caps and Small-Caps slid by 3.3% and 4.5%, respectively, with the latter now on the cusp of "correction" territory.
• Real estate equities continued their outperformance on data showing record levels of rent growth ahead of the start of earnings season next week. REITs remain the top-performing asset class this year.
• Inflation Stays Red Hot: The BLS reported that both consumer and producer prices rose at the fastest annual rate in decades in June. Consumer sentiment dipped on mounting concerns about rising prices.
• Fresh data from Realtor.com revealed that rents continue to soar across the nation at historically high rates. In 44 of the 50 largest U.S. housing markets, rents in June were the highest they’ve ever been with the median rent jumping 8.1% from last year.

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