The latest CPI figures are showing a positive sign that official interest rates will not change, according to REIA.
Today’s release of the December 2019 quarter CPI figures continues to be good news for home buyers and renters, said Adrian Kelly, president of the Real Estate Institute of Australia (REIA).
The slight change in inflation data, Mr Kelly said home buyers can be assured the RBA won’t be increasing official interest rates at next Tuesday’s RBA meeting.
“The All Groups CPI, increased by 0.7% in the December quarter giving an annual increase of 1.8%. This is slightly up on the September quarter figures of 0.7 % and 1.7%, respectively,” said Mr Kelly.
“The annual changes for the analytical series of trimmed mean and for the weighted median were 1.6% and 1.3% respectively.
“The annual changes in the trimmed mean have been below 2% since December 2015 and for the weighted median since March 2018 and suggests the continuation of historically low official interest rates for some time yet.
“The Housing Group increased by 0.1% for the quarter and 0.2% for the year to December 2019.
Mr Kelly said rents did not increase at all for the quarter and increased by just 0.2% for the year.
“This is the lowest annual change since ABS started the series in September 1973,” said Mr Kelly.
“With the RBA meeting next week home buyers can be comfortable in the knowledge that the latest inflation data would suggest that the RBA will not be increasing official interest rates for some time yet.”