So, with all the excitement buzzing around ChatGPT, we decided to put our trusty tool to the test and have it take a peek at the latest monthly CPI in Australia as analysed by Macrobond. Check out its commentary below:
Looks like housing inflation is draining our wallets, with rent prices refusing to budge!
Get ready to breathe a sigh of relief – overall inflation has fallen to 6.8% YoY! However, the housing market is still a heavyweight contributor, currently sitting at a whopping 9.9%. While it might be calming down slightly compared to the last 11 months, it's still elevated enough to make a dent in our wallets.
On the bright side, travel & accommodation costs are seeing a post-holiday season drop. And here's some sweet news – food & beverages appear to have peaked, with meat & seafood and fruit & vegetables falling from their summer 2022 highs.
Want to get ahead and see where housing inflation is headed? Our team built two leading indicators using SQM Research's Housing Rental & Asking Price Index YoY change. Brace yourselves – rents remain sticky with a correlation of over 75% since 2016! But new dwelling purchases should be coming down over the next eight months.
Get ready to say goodbye to your paycheck, folks! Based on the above indicators, it looks like rents aren't going away anytime soon. And with vacancy rates at an all-time low, it's safe to assume your rent will be going up again come renewal time.
Looks like we'll be pinching pennies for a while longer - let's hope it pays off!