Inflation uptick underscores delicate balance for housing and households – REIA
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Photo by Curtis Adams
The Real Estate Institute of Australia (REIA) said the latest ABS CPI figures show higher than expected inflation figures, as the RBA’s next move carries significant consequences for mortgage holders.
Inflation for the year to September was 3.2 per cent, according to data released by the Australian Bureau of Statistics on Wednesday, a rise in the headline inflation rate of 1.1 per cent.
REIA President Ms Leanne Pilkington said the results painted a stark picture compared to the June quarter’s encouraging figures, dashing hopes of another rate cut for this year.
“The annual trimmed mean inflation is now at the top of the RBA’s target range and may result in the RBA holding its rates steady at its meeting next week,” Ms Pilkington said.
“Rental prices increased by 3.8 per cent over the 12 months to the September quarter, but were down from 4.5 per cent to the June quarter. The easing in annual rental price growth reflects stable vacancy rates and slowing growth in advertised rents across most capital cities.
“However, new dwelling prices rose 0.9 per cent over the 12 months to the September quarter, displaying a slight uptick as home builders have raised base prices”.
She said the data reinforced the importance of measured and data-driven decisions by policymakers.
“We’re in a phase where the RBA’s next move carries real consequences for both confidence and affordability,” Ms Pilkington said.
“Stability in economic settings is essential to support investment, construction, and a sustainable housing supply.”
Ms Pilkington noted that while the RBA is widely expected to hold rates this week, it must also consider the acute financial distress of Australian families. The hopes of a Melbourne Cup Day rate cut have been slashed as this is the highest annual inflation rate since the June 2024 quarter when annual inflation was 3.8 per cent.