Interest rates Australia: Further rate cuts by Reserve Bank at risk as rent pushes up inflation
Increased construction costs and rent increases may prove that there are blocks for more rate deductions than the reserve bank.
The latest data from the quota shows that concerns about housing inflation and the re -collected rental recalculation in the state capitals for the first time in two years.
According to Cotality’s August monthly housing graph package, the Capital City Rental value index increased by three percent from 2.7 percent one month ago.
This pointed to the end of 16 straight -month moderate or stable rental growth.
Kotatian economist Kaytlıin Ezzy said it was a trend worthy of eye.
AAP is an indication that the re -collection we have seen more recently in the growth of rent and construction costs, perhaps an indication that inflation hits the ground in terms of growth rate in terms of growth rate, Aap said.
“And we will see that this component of the CPI basket is moving forward.
“If he continues to show higher tendency, he can put future rate cuts in Jeopardy.”
Consumer Price Index (CPI) basket is the goods and services used to monitor changes in the cost of living.
Ezzy said that the housing component constitutes more than one fifth of the basket and the rents were 6.6 percent.
Another concern for housing inflation is an increase in construction costs from 2.6 percent to June 2024 from 2.6 percent to 2.9 percent.
Labor, construction costs is an important factor in increasing, he said.
“Recently, we have introduced our CCCI index report covering the increase in construction costs during the June quarter … It shows that we have seen a little more pressure in construction costs, especially in the housing projects competing for this business with infrastructure projects,” he said.
Sydney and Brisbane have increased unit markets and re -calculated in capital rental growth.
Annual changes in housing rents in NSW Capital increased to 2.4 percent in July until 12 months.
Brisbane’s annual rent tendency increased by 1.4 percent in February after 4.6 percent of 3.2 percent.
Ezzy, Melbourne’s new housing stock market in recent years, the tendency of rent growth in recent years, he said.
The Reserve Bank reduced interest rates for the third time in six months on Tuesday.
