If you are resetting your annual out of home ad contracts or negotiating with a landlord over a rent inflator you need to keep track of inflation.  Billboard Insider looked up the US inflation data for the past 20 years:

• Inflation is at an annualized rate of 8.5%  for the 8 months ended August 2022.
• Inflation has averaged 2.5% for the past 10 years.
• Inflation has averaged 2.5% for the past 20 years.

Billboard Insider’s take:  If you think the fed will get control of the covid-stimulus based spike in inflation then you should build 2.5%/year inflation into your loan term contracts and leases.  If you are worried that the fed won’t have the will power to bring inflation down you should try to lock in your leases as a fixed rate and you should be negotiating aggressively with ad clients for annual rate increases in excess of 5%.

Here’s the data:

Source:  www.rateinflation.com

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