The Global Fight Against Inflation Has Turned a Corner
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,730,998 (-1.35%)       Melbourne $1,052,750 (-0.63%)       Brisbane $1,213,162 (-0.55%)       Adelaide $1,088,669 (-1.01%)       Perth $1,109,065 (-0.03%)       Hobart $857,011 (-0.15%)       Darwin $850,231 (-5.88%)       Canberra $1,057,418 (+2.13%)       National Capitals $1,179,457 (-0.85%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $812,882 (-0.02%)       Melbourne $547,522 (-0.39%)       Brisbane $775,633 (-1.81%)       Adelaide $583,866 (+1.25%)       Perth $661,533 (-0.91%)       Hobart $583,528 (+2.34%)       Darwin $488,291 (-0.29%)       Canberra $502,282 (+1.20%)       National Capitals $640,074 (-0.20%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 14,388 (-149)       Melbourne 16,400 (-697)       Brisbane 9,524 (+147)       Adelaide 2,995 (+70)       Perth 7,340 (+170)       Hobart 758 (-2)       Darwin 142 (+4)       Canberra 1,228 (-5)       National Capitals 52,775 (-462)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 9,737 (+19)       Melbourne 6,931 (-54)       Brisbane 1,794 (+10)       Adelaide 449 (+21)       Perth 1,390 (+12)       Hobart 145 (-6)       Darwin 212 (+3)       Canberra 1,245 (+31)       National Capitals 21,903 (+36)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $870 ($0)       Melbourne $610 (+$10)       Brisbane $700 ($0)       Adelaide $650 ($0)       Perth $750 ($0)       Hobart $625 ($0)       Darwin $875 (+$25)       Canberra $730 (-$20)       National Capitals $739 (+$3)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $815 (-$5)       Melbourne $630 ($0)       Brisbane $680 ($0)       Adelaide $555 (-$5)       Perth $700 ($0)       Hobart $545 (+$45)       Darwin $655 (+$5)       Canberra $600 ($0)       National Capitals $658 (+$3)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 6,162 (+59)       Melbourne 7,192 (+17)       Brisbane 3,645 (-54)       Adelaide 1,428 (+38)       Perth 2,339 (-34)       Hobart 280 (+15)       Darwin 38 (-7)       Canberra 456 (+28)       National Capitals 21,540 (+62)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 9,135 (+92)       Melbourne 5,909 (+25)       Brisbane 1,996 (+38)       Adelaide 446 (-20)       Perth 714 (-5)       Hobart 70 (+3)       Darwin 78 (+8)       Canberra 695 (-26)       National Capitals 19,043 (+115)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.61% (↑)      Melbourne 3.01% (↑)      Brisbane 3.00% (↑)      Adelaide 3.10% (↑)      Perth 3.52% (↑)      Hobart 3.79% (↑)      Darwin 5.35% (↑)        Canberra 3.59% (↓)     National Capitals 3.26% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.21% (↓)     Melbourne 5.98% (↑)      Brisbane 4.56% (↑)        Adelaide 4.94% (↓)     Perth 5.50% (↑)      Hobart 4.86% (↑)      Darwin 6.98% (↑)        Canberra 6.21% (↓)     National Capitals 5.34% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 1.4% (↑)      Melbourne 1.5% (↑)      Brisbane 1.2% (↑)      Adelaide 1.2% (↑)      Perth 1.0% (↑)        Hobart 0.5% (↓)       Darwin 0.7% (↓)     Canberra 1.6% (↑)      National Capitals $1.1% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 1.4% (↑)      Melbourne 2.4% (↑)      Brisbane 1.5% (↑)      Adelaide 0.8% (↑)      Perth 0.9% (↑)      Hobart 1.2% (↑)        Darwin 1.4% (↓)     Canberra 2.7% (↑)      National Capitals $1.5% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 32.7 (↑)      Melbourne 32.4 (↑)        Brisbane 33.3 (↓)     Adelaide 27.4 (↑)        Perth 37.9 (↓)       Hobart 27.4 (↓)     Darwin 27.7 (↑)      Canberra 29.7 (↑)      National Capitals 31.1 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 30.5 (↓)     Melbourne 29.9 (↑)      Brisbane 33.2 (↑)        Adelaide 21.3 (↓)       Perth 38.5 (↓)     Hobart 31.1 (↑)        Darwin 38.7 (↓)       Canberra 38.0 (↓)       National Capitals 32.6 (↓)           
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The Global Fight Against Inflation Has Turned a Corner

Falling inflation across industrialized countries opens the door for central banks to start cutting interest rates next year

By Tom Fairless and Paul Hannon
Thu, Nov 16, 2023 4:28pmGrey Clock 5 min

Inflation is falling faster than expected across advanced economies, marking a turning point in central banks’ two-year battle against surging prices.

Declines in consumer price growth, to below 5% in the U.K. last month and around 3% in the U.S. and eurozone, are fueling expectations that central banks could take their feet off the brakes and pivot to cutting interest rates next year.

That would provide welcome relief to a global economy that is struggling outside the U.S., increasing the prospects of a soft landing from a historic series of interest-rate increases without large increases in unemployment. Europe, in particular, is on the brink of recession.

Yields on government debt in Europe and the U.S. have slumped as investors start to price in earlier interest-rate cuts.

For months this year, economists puzzled over why growth and inflation hadn’t slowed more in response to interest-rate hikes. Now, there is growing evidence that higher borrowing costs are biting hard with a delay.

“It’s definitely a turning point for inflation,” said Stefan Gerlach, a former deputy governor of Ireland’s central bank. “Investors may be surprised at how rapidly central banks cut interest rates next year, maybe by one-and-a-half percentage point.”

The sharp declines in inflation across continents underscore how common factors drove up prices in the first place, especially the Covid-19 pandemic and Russia’s war in Ukraine. These crimped global supply chains, reduced the number of people in the workforce and fueled energy price increases, especially in Europe. As those forces subside, price pressures naturally ease.

Inflation was also given a boost by demand-side factors, such as trillions of dollars of government stimulus spending in the U.S., as well as pent-up demand and savings from consumers that accumulated during the pandemic. That, economists say, is why underlying inflation remains strong nearly four years after the start of the pandemic, and why rate increases were needed to bring it down.

Lower inflation “shows the effect of increasing rates by 4 or 5 percentage points,” Gerlach said. “Team Transitory were wrong,” he added, referring to a debate among economists over whether high inflation would subside by itself, a camp to which he belonged. “Our idea was that inflation would fall back without an increase in interest rates.”

Even countries where inflation has proved the most stubborn, such as the U.K., have started to show progress. Consumer prices rose 4.6% in October compared with the year-ago month, a drop from the 6.7% rate of inflation recorded in September and the slowest increase since October 2021, the statistics agency said Wednesday. Economists had expected to see a decline to 4.8%.

“The U.K. no longer looks like such a major outlier when it comes to inflation,” said Bruna Skarica, an economist at Morgan Stanley.

News of the U.K. decline followed Tuesday’s report of a larger than expected drop in U.S. inflation to 3.2% in October. The eurozone also reported a decline in inflation to 2.9% in October from 4.3% in September. Consumer prices were lower than a year earlier in Belgium and the Netherlands.

The cooling of consumer prices has persuaded some European policy makers that the battle to tame inflation has been won, and in a shorter period of time than in the 1970s, when a comparable surge in prices occurred.

“We’re in the process of exiting the inflationary crisis,” said France’s Bruno Le Maire before meeting with his fellow European Union finance ministers last week. “In a little under two years, Europe will have managed to control inflation, which weighs on our citizens, which weighs on households, especially the less wealthy.”

Investors are also more optimistic. They are pricing in interest-rate cuts by the Federal Reserve and European Central Bank starting next spring, and by the Bank of England next summer, according to data from Refinitiv.

Markets had priced a 30% probability of another rate increase by the Fed, from its current level of 5.25% to 5.5%, until publication of U.S. inflation data on Tuesday. That probability has now fallen to 5%, according to Deutsche Bank analysts. The prospect of a Fed rate cut by May soared from 23% on Monday to 86% by Tuesday‘s close.

Central bankers are more cautious after being surprised last year by the persistence of inflation. The Bank of England last month said it is too soon to think about cutting interest rates, having forecast that inflation would reach its 2% target in late 2025. Central bankers also point to the still-rapid rise in wages and the risk of higher energy prices if the conflict between Israel and Hamas spreads to other parts of the Middle East.

Morgan Stanley’s economists expect to see the Bank of England start to cut rates beginning next May, followed by the Federal Reserve and the European Central Bank in June. Regardless of the exact timing, there is a growing consensus that inflation is on the wane and lower interest rates will follow.

“We expect widespread declines in inflation and interest rates in 2024 across advanced economies,” Michael Saunders, a former BOE rate setter, wrote in a note to clients of Oxford Economics.

If so, it would raise the question of whether central banks overdid it with rate increases, especially in Europe.

Economists say those hikes are working their way through the economy, weighing on lending and spending. Job creation is slowing and unemployment is edging higher on both sides of the Atlantic, curbing wage growth. Households are becoming more reluctant to spend, as higher interest rates make it more advantageous to save, economists say. That weighs on growth prospects over the coming months.

U.S. retail sales fell 0.1% in October from a month earlier, the Commerce Department said Wednesday. That is the first decline since March and comes after a 0.9% increase in September. In the eurozone, industrial output declined by 1.1% in September from the previous month, official data showed on Wednesday.

The decline in inflation will be welcome news for political leaders, even if it has yet to boost their popularity.

While global factors contributed to the worst of the inflation surge and most of the recent decline, domestic economic conditions are likely to matter most as central banks enter the final stage—the so-called “last mile”—of getting inflation down to their targets of around 2%.

In the U.S., inflation is ebbing, as the labor market and consumer spending cool but remain solid. This has bolstered forecasts that price pressures will keep easing without a recession.

In Europe, the economic backdrop is more challenging. The continent faces headwinds to growth, from slowing global trade and sluggish growth in China, a critical export market, to efforts by governments to slow spending. Germany’s constitutional court on Wednesday ruled against a move by Chancellor Olaf Scholz‘s government to repurpose €60 billion in unused pandemic funds to finance green energy initiatives, creating a large hole in the state budget.

European households have also been more reluctant than their U.S. counterparts to spend pandemic-era savings. All that could lead to a deeper downturn and sharper drop in inflation in Europe, prompting earlier rate cuts by the ECB.

Despite the likelihood of lower interest rates ahead, a return to the period of ultra low interest rates that preceded the pandemic is deemed unlikely by many economists and investors, reflecting rising geopolitical tensions and demographic pressures.

Workforces are likely to shrink across major economies, including China, over the coming years as millions of baby boomers retire, driving up wages. And friction between China and the West will likely raise manufacturing costs as companies shift factories to other countries.



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The Budget Wake-Up Call for Wealthy Australians

The Federal Budget may have softened some of its proposed tax reforms, but it has exposed a bigger issue: too many families are relying on wealth structures that no longer reflect the realities of modern life.

By Opinion, Anthony Hunt
Mon, Jun 22, 2026 3 min

For many Australians, the 2026 Federal Budget initially felt like a direct challenge to the way wealth is created, held and transferred between generations.

The headlines were immediate: changes to capital gains tax, reforms to discretionary trusts, restrictions on negative gearing and increased scrutiny of investment structures. Unsurprisingly, affluent families, business owners and investors began asking the same question:

Is the way we hold our wealth still fit for purpose?

In recent days, the government has announced several significant amendments following industry consultation and public feedback, including exempting testamentary trusts from the proposed 30 per cent minimum tax and expanding capital gains tax concessions for small businesses.

The backdown is welcome. But it also highlights something much bigger.

This Budget has accelerated a conversation that many Australian families have been postponing for years.

The conversation is not really about tax. It is about wealth stewardship.

For decades, Australians have built wealth through businesses, property, investments and careful long-term planning. Yet many families have not revisited the legal structures surrounding those assets in years, sometimes decades.

We often see clients who have spent years building significant wealth, only to discover their legal arrangements no longer reflect their current circumstances.

Their children are now adults. They may own multiple properties.

They may have sold a business, entered a second marriage, become grandparents or accumulated digital assets that did not exist when their original estate plans were prepared.

The trust that distributes income may need to be reconsidered. The bucket company may no longer be so attractive.

The Budget has simply exposed a reality that already existed: wealth structures cannot remain static while life continues to evolve.

Importantly, trusts themselves are not the issue.

Trusts are legitimate planning tools that provide flexibility, protection and continuity. When used appropriately, they allow families to adapt to changing circumstances over time.

And neither is tax the issue, really. Getting the fundamentals right is more important for long-term, sustainable wealth than a few favourable tax treatments around the edges.

Anthony Hunt

The real issue is complacency.

Too often, families create structures and assume the job is done. It isn’t.

Estate planning is no longer a document you sign once and file away in a drawer. It is an ongoing process that should evolve alongside your life.

We are also seeing a broader shift in how Australians define wealth itself. It is no longer just the family home and an investment portfolio.

Modern wealth includes businesses, digital assets, cryptocurrency, intellectual property, frequent flyer points and increasingly complex family arrangements.

At the same time, Australians are living longer than ever before, meaning wealth may need to support multiple generations simultaneously. This creates new responsibilities and new risks.

How do you help your children enter the property market without exposing family wealth to relationship breakdowns?

How do you structure wealth so that it remains a source of opportunity rather than future conflict?

These are the questions families should be asking now.

The recent debate surrounding testamentary trusts also serves as an important reminder that policy decisions can have unintended consequences for vulnerable Australians. It is encouraging that the government has listened to feedback and clarified its position.

But the lesson remains: the wealth landscape is changing.

Increasingly, governments, regulators and tax authorities are paying closer attention to how wealth is held and transferred. That means families cannot afford to adopt a “set-and-forget” approach to their structures.

The families who will be best placed for the future are not necessarily those with the greatest wealth.

They are the families with the greatest clarity. Clarity around ownership, succession and governance. And clarity around how wealth will transition from one generation to the next.

Ultimately, preserving wealth is not about avoiding change.

It is about preparing for it.

Because the greatest risk is not change itself.

It is losing the ability to respond to it.

Anthony Hunt is Co-Founder of Wealth Lawyers and former COO of Westpac Private Bank. He advises business owners, investors and affluent Australian families on wealth protection, succession planning and intergenerational wealth transfer

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