INFLATION STALLED

 With the Reserve Bank of Australia bracing to meet next Tuesday 4th July will the latest Consumer Price Index spell good news for all the borrowers out there?

According to the data from the Australian Bureau of Statistics the CPI rose 5.6 per cent in the l2 months to May, down from the 6.8 percent figure recorded in April.

The latest figure confirms the overall trend down in inflation from the December 2022 figure of 8.5% you would hope to think that the RBA will take that heavily into consideration. However we all know that they go in hard and quite often will have to rectify it.

The annual movement for the monthly CPI, excluding the volatile items of fruit and vegetables, automotive fuel, holiday travel and accommodation, rose 6.4% in May down from 6.5% in April. (we all know in our hearts that most people are taking the p...s out of it and making sure they are rising their costs to as much as possible)

This increase is the smallest increase since April last year so we know we are on the right track - people are definitely hurting and that's what they want right?

The most significant contributors to the annual increase in the May month CPI indicator were housing (up 8.4%), food and non-alcoholic beverages (up 7.9%, furnishings, household equipment and services (up 6%), and transport (7.11%).

Notably, the annual increase for the housing group was lower than it has been for the previous five months.

Of course, rents have continued rising with the CPI reporting an annual increase of 6.3% in May, up 0.2% (not a lot in my view) on April's results. Both rising interest rate and dwindling supply are responsible for their persistent rising.  (even though the Greens want to put a halt on rents)

To be honest the rents are only just coming back to what they were in 2013. 

For the 10 years to the march quarter rents based on the ABS data increased by 13% whereas the CPI increased by 29.5%, in that time there were five years' when rents didn't move at all. (no one complained about that now did they?)

Advocates of a CPI plus cap on rents purporting to be the renter's friend should keep in mind that tenants would have been worse off over the past decade had a CPI plus approach been in place.

Having moved past the peak reached towards the back end of last year we should all be urging Australia's central bank to STOP further increases on interest rate and avoid the serious risk of tipping the economy into a recession.

Unfortunately our fate is all in the ACB hands and we will not be able to control what's going to happen.  Buckle up and trim those budgets save where you can and make extra payments where you can even if its $20 switch to weekly payments if you can.

Rents will calm down but the demand wont be for a while so its something we just have to get used to I am afraid, competing for these rentals just means you have to have all your ducks in a row and make sure your application is perfect.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!

SELLING MOSMAN PARK & THE WESTERN SUBURBS!!

KEEPING IT REAL IS OUR MOTTO!!