Inflation matters for an out of home company.  It tells you how fast you need to grow revenues to avoid going backwards and landlords incorporate inflation into their out of home rent expectations.  In January Billboard Insider reported that inflation was 3.4% for 2023.  The good news is that inflation is moderating and that the market expects inflation to decline.

• Inflation (based on all prices, not just the CPI) was 3.2% at February 2024, down from 3.4% at December 2023.
• The market expects to see inflation of 2.4%/year for the next 5 years and 2.3%/year for the next 10 years.  You can infer projected inflation by looking at the breakeven rate which is the difference between the regular Treasury bond and the Inflation Linked Treasury bond for each time period.

Billboard Insider’s take: Build 2.4%/year inflation into your ad contracts, out of home leases and cost budgets for the next five years.