Source: AAP Image/ James Ross
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House prices are pretty much the only prices falling across Australia which is something like irony, considering they are not part of the consumer price index the RBA is targeting.
Expect rising CPI and falling house prices to continue — RBA governor Philip Lowe confirmed it on Tuesday when he raised official interest rates by 0.25% and lifted forecasts for consumer price inflation.
Consumer prices are expected to rise by 8% this year. The previous forecast was 7.8%, so inflation is continuing to worsen, despite the RBA’s actions. That rate of price growth will compound quickly.
We had inflation of 3.5%
ABOUT THE AUTHOR
Jason is an economist and freelance journalist. He has worked at The Australian Financial Review and for the Republic of Nauru and the Australian Treasury. He blogs at Thomas the Think Engine.
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