Rate of inflation eases but high building costs persist
The ABS data comes as the RBA Board prepares to meet on interest rates next week
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The rate of inflation has fallen to 5.6 percent, figures from the Australian Bureau of Statistics show.
Housing, food and non alcoholic beverages, as well as furnishings saw the greatest price increases, up 8.4 percent, 7.9 percent and 6 percent respectively. However, they were offset by automotive fuel, which fell by -8 percent, thanks to a stronger Australian dollar reducing the cost of importing oil, as well as increased oil production.
The fall in inflation of 5.6 percent over May continues the steady lowering of the CPI, which was recorded at 6.8 percent in April. The latest figures represent the smallest rise since April 2022.
The timing is potentially good news for mortgage holders, taking pressure off the RBA Board to further increase the cash rate when they meet next Tuesday.
The news was less promising for the construction industry, where sustained high labour and material costs have resulted in dwelling prices increasing 8.3 percent over the 12 months to May. However, the ABS noted the rate of growth had eased compared with July 2022 when the cost of building reached a record high increase of 21.7 percent.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The construction sector is roaring back to life in some Australian states while others languish in the doldrums
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The home building market is on the rebound as building approvals rise, new data reveals.
Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.
Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.
Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.
In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
