REIA says the latest consumer price index (CPI) figures are good news for home buyers and renters.
Figures released by the Australian Bureau of Statistics revealed CPI rose by only 0.7 of a percentage point in the December 2019 quarter, which was slightly more than the 0.5 of a percentage point increase in the September quarter.
The year ended with CPI up by 1.8 per cent.
REIA president Adrian Kelly drew attention to the trimmed mean and the weighted median, which were up by 1.6 per cent and 1.3 per cent, respectively.
“The annual changes in the trimmed mean have been below 2 per cent 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,” Mr Kelly said.
“The Housing Group increased by 0.1 [of a percentage point] for the quarter and 0.2 [of a percentage point] for the year to December 2019.
“Rents did not increase at all for the quarter and increased by just 0.2 [of a percentage point] for the year.”
This is the lowest annual increase in rent since the ABS started monitoring it in 1973, he said.
“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.”