INSIGHTS

Lease Insights – April 2022

Typically prices rise over time.

This is often referred to as Inflation and in Australia the most well-known measure of inflation is the Consumer Price Index (CPI).

This index measures the percentage change in the price of a basket of goods and services typically consumed by Australian households.

Other countries not only have different ways of measuring inflation, but their rates of inflation vary quite a bit.

To give you some idea and as a guide to where we may be heading, I have set out below the current inflation rate in a few other countries.

Switzerland                                             2.4%

South Korea                                            4.1%

Canada                                                    5.7%

United Kingdom                                     6.2%

Germany                                                  7.3%

United States                                          7.9%

Spain                                                        9.8%

Brazil                                                        10.5%

Argentina                                                 52.3%

Turkey                                                      61.1%

How does this help us in the Commercial Property sector? Well, if we think Australia is likely to follow some of these other countries, then including CPI rent reviews in any new Leases, is probably not a bad idea.

As always if you have any questions, please let me know.

Regards

Steve Evans