Billionaire Barry Sternlicht predicts sharp drop in inflation based on rental trends.

Billionaire investor Barry Sternlicht predicts that inflation will drop hard, citing falling rents as the reason. He believes that there is a lag in the way the government reports rental data, but if corrected, it will show up later. Shelter is one-third of CPI, so if corrected, it will bring headline inflation down, and it will likely happen in the late summer and early fall. Sternlicht argues that even though inflation is falling, the US is going into a serious recession.