Inflation rising means central banks will taper or raise rates. This directly impacts the risk free rate which is used for most asset pricing and valuation.
if the risk free rate increases the value of all assets across the board should be devalued especially highly levered asset classes such as real estate and to some extent stocks (margin).
An intuitive reason for this is the risk free rate represents the "risk free" opportunity cost of capital. So if it is more attractive people are less likely to be so aggressive in chasing risky speculative returns which is what we have been seeing in this world of ZIRP of late.
