You need to keep track of inflation when you reset ad rates or negotiate lease rates.  The market is projecting 2.69%/year annual inflation over the next five years.  How does Billboard Insider know?  He looked at the difference between the 5 year treasury rate and the five year treasury inflation indexed rate.  The difference is sometimes called the 5 year TIPS/Treasury breakeven rate.  It’s 2.69% at October 21, 2022, a little bit above average inflation of 2.5%/year for the past 20 years.  See this 5 year TIPS/Treasury Breakeven Rate chart from YCharts.

Billboard Insider’s take:  If the market is expecting 2.7% inflation for the next five years it’s a good idea to build this number into your lease and ad pricing.

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