EPRT - Inflation Remains Relentless

• U.S. equity markets were slammed this week after inflation data showed that consumer price pressures remain broad-based and unrelenting, despite continued indications of softening demand and declining confidence.
• Declining for the ninth week out of the past ten and posting its worst week since January, the S&P 500 retreated 5.1%, dragging it back to the cusp of "bear-market" territory.
• Real estate equities were under pressure as well, despite an upbeat slate of REITweek updates and dividend hikes. Equity REITs declined 5.7% with the retail and hotel sectors hit particularly hard.
• Peak Inflation? Not yet. Consumer prices rose at the fastest pace in more than four decades in May and significantly faster than expected. Remarkably, the cost of food surged over 10% for the first time since March 1981 while energy prices soared 35%.
• The REIT industry gathered in New York City this past week for its annual REITweek conference, the tone of which was generally quite upbeat - particularly across the residential and industrial sectors - even as executives acknowledged storm clouds gathering across the broader economy.

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