In addition, core inflation, which excludes volatile items such as food and energy, has slowed to 5.3%, the lowest since November 2021. This broadly supports the argument for the Federal Reserve to consider pausing its current cycle of monetary tightening. We expect inflation to settle in at around 2.5% for the next two years. This should translate into activity increases in
the construction industry, as lower interest rates make borrowing money to finance new projects easier.