Macro and Politics

* The CBT will release the Residential Property Price Index (RPPI) for April @ 10:00 local time. The Residential Property Price Index (RPPI) rose by 2% m/m and 26.4% y/y in March, reaching 219.7, while declining by 3.4% y/y in real terms. Recall that the real annual change in the RPPI had turned positive at 0.2% in November for the first time since January 2024, before reverting back into negative territory as of December. In this respect, the March reading indicates that residential property prices continue to lose value in real terms. Meanwhile, the New Tenant Rent Index (NTRI) increased by 2% m/m and 34.4% y/y to 304.2 in March, posting a real annual gain of 2.7%. This configuration points to an ongoing real erosion in property prices, while upward pressure in the rental segment remains intact. Against this backdrop, we expect rent inertia—one of the key components within inflation dynamics—to persist in the near term, with rent inflation continuing to accompany the headline disinflation process in a more lagged and resilient manner.