Consumer prices crept up 0.5% in the September quarter – bringing good news for home owners, according to one property industry association.
The Consumer Price Index (CPI) reading for the September quarter brings the yearly increase to 2.3%, according to the figures released by the Australian Bureau of Statistics. This follows a 0.5% increase in the June quarter and a 3% increase in the year to June.
The Real Estate Institute of Australia (REIA) president, Peter Bushby says the recent CPI figures should translate into good news for home owners.
“These figures are still well within the RBA
’s target zone of 2-3% and should not put real pressure on the inflation outlook,” he said.
The housing group increased by 0.5% for the September quarter compared to 0.8% in the June quarter – the annual rate of increase of 2.3% is down from 3.9% for the year to June.
The main increases in the September quarter for the housing group was for property rates and charges, which increased by 6.3%. Rents increased by 0.5% for the quarter and 2.3% for the year.
These figures are likely to lead to a period of stability in interest rates for the near future, says Bushby.
“With inflation under control combined with indications in some markets that housing is tempering, it’s appropriate that the RBA Board maintains interest rates at their present level.”