Rate relief in sight as inflation drops to 4.1 percent
CBA head economist says CPI came in well below the Reserve Bank’s forecast of 4.5 percent
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Inflation fell to a two-year low of 4.1 percent per annum in the December quarter, according to figures released by the Australian Bureau of Statistics. This is well below the Reserve Bank (RBA) forecast of 4.5 percent, with CBA’s head economist Gareth Aird saying it “should be a straightforward decision” for the RBA to keep rates on hold at its first meeting for 2024 next week.
Michelle Marquardt, ABS head of prices statistics, said the consumer price index (CPI) rose 0.6 percent in the December quarter, which was the smallest quarterly rise since the March 2021 quarter. Annual CPI has now fallen from a peak of 7.8 percent in the December 2022 quarter to 7 percent in the March 2023 quarter, 6 percent in the June quarter, 5.4 percent in the September quarter and sharply lower to 4.1 percent in the December quarter.
The most significant price rises in the December quarter were for tobacco, up 7 percent following the introduction of the 5 percent annual tobacco excise indexation; domestic holiday travel and accommodation, up 3.9 percent; and insurance, up 3.8 percent. “The increase in insurance was due to higher premiums across motor vehicle, house and home contents insurance,” Ms Marquardt said. “Over the past twelve months, insurance rose 16.2 percent, making it the largest annual rise since March 2001.”
Housing costs rose by 1 percent over the quarter, driven by new dwellings purchased by owner–occupiers, up 1.5 percent; rents, up 0.9 percent; and utilities, up 0.6 percent. “Higher labour and material costs contributed to price rises this quarter for construction of new dwellings, Ms Marquardt said. CoreLogic head of research Eliza Owen commented that rental inflation “is finally slowing, suggesting some hope for tenants that the rental market could turn a corner in 2024, which is also indicated by CoreLogic rent measures”.
Annual goods inflation continues to moderate faster than services. December was the fifth consecutive quarter of lower goods inflation, down from a peak of 9.6 percent in the September 2022 quarter to 3.8 percent in the December 2023 quarter. Prices have even fallen in some categories over the past 12 months, such as clothing, footwear, furniture and household appliances. Annual services inflation eased for the second consecutive quarter, down from a peak of 6.3 percent in the June quarter to 4.6 percent in the December quarter.
Federal Treasurer Jim Chalmers said the government’s cost-of-living relief measures were directly contributing to a reduction in inflation. “Our cost of living policies took half of a percentage point off inflation through the year to December quarter 2023,” Dr Chalmers said. The ABS figures show that over the year, electricity prices rose 6.9 percent but would have risen 18.9 percent without the Energy Bill Relief Fund rebates. Childcare prices fell 7.2 percent but otherwise would have risen 13 percent.Rents rose 7.3 percent but would have risen 8.9 percent without the largest increase to Commonwealth rent assistance in 30 years.
Mr Aird said the inflation data would be “viewed favourably by policymakers”. He added: “The fall in the rate of inflation over the past year has been swift. The job of returning inflation to the 2-3 percent target band is not yet done. But the RBA is now on the home straight. We continue to expect an easing cycle commencing in September. We have 75bp of rate cuts in our profile in late 2024 and a further 75bp of easing in H1 25, which would take the cash rate to 2.85 percent.”
The 1860s Darlinghurst mansion Stoneleigh could become Sydney’s most expensive home ever sold under the hammer when it goes to auction. Clint Ballard is giving buyers a $28 million guide for the heritage-listed mansion on Darley Street, opposite Iona, the former home of Hollywood royalty Baz Luhrmann. Stoneleigh is being offered for sale for the …
Set on one of the city’s last absolute riverfront sites, The Riversdale by Mosaic combines irreplaceable waterfront ownership with one of Brisbane’s most significant residential opportunities.
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A landmark Watsons Bay residence formerly owned by businessman Mark Bouris has returned to the market, bringing one of the harbourside village’s most distinctive homes back into play.
The five-bedroom property at 23 Robertson Place occupies 654 square metres opposite Robertson Park, within footsteps of Watsons Bay Beach, the ferry wharf and the celebrated restaurants lining the foreshore.
Its position places the home at the centre of one of Sydney’s most recognisable harbour villages, yet its substantial proportions, private outdoor areas and garaging give it a degree of separation rarely found so close to the waterfront.
The residence was previously owned by Bouris, the founder of Wizard Home Loans and chairman of Yellow Brick Road. Property records show it last changed hands in November 2013 for $7 million, having sold for $890,000 in 1995.
That 2013 transaction was handled by prestige agent Bill Malouf through Highland Double Bay. Bouris was the vendor when the home last sold.
Architect Malcolm Sholl designed the contemporary residence around a fluid connection between its interiors and outdoor entertaining areas. Extensive glazing draws natural light into the principal rooms, while district views take in the Sydney Harbour Bridge.
Travertine flooring extends through the principal living areas and out towards the terraces, reinforcing the relationship between the home and its coastal setting.
At the centre of the residence is a marble kitchen equipped with Gaggenau gas appliances and an integrated Miele coffee machine. It connects to expansive open-plan living and dining areas designed for both family life and large-scale entertaining.
Five double bedrooms are accompanied by three bathrooms and a guest powder room. Informal living spaces include a home cinema.
Outside, there’s a 23-metre lap pool and an alfresco entertainer’s terrace. Internal access from the garage and accommodation for four cars are especially valuable in the tightly held village location.
The address also carries an unusual fragment of local architectural history. Woollahra planning material identifies portions of an early Victorian cottage dating from about 1839 within the contemporary three-storey residence, placing the property within the wider Watsons Bay heritage conservation area.
The home made headlines for another reason in January 2025, when a Ferrari left the road and struck the property. Two occupants of the vehicle were taken to hospital following the incident.
The Agency’s Ben Collier has a $20 million guide.
Watsons Bay remains one of Sydney’s smallest and most tightly held prestige markets. There have only been two house sales in the suburb so far in 2026. The suburb record was set late last year when yachtie Linda Goddard paid $35.5 million for a Pacific Street waterfront.
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The 1860s Darlinghurst mansion Stoneleigh could become Sydney’s most expensive home ever sold under the hammer when it goes to auction. Clint Ballard is giving buyers a $28 million guide for the heritage-listed mansion on Darley Street, opposite Iona, the former home of Hollywood royalty Baz Luhrmann. Stoneleigh is being offered for sale for the …
