The latest consumer price index (CPI) figures confirm the Reserve Bank’s assessment that inflationary pressures are well contained, according to the Real Estate Institute of Australia (REIA).
REIA president Neville Sanders said this means that we can expect a sustained period of low interest rates, “which is good news for home owners”.
“In the December quarter, the CPI rose by 0.4 per cent and an annual rate of 1.7 per cent. These figures are well below the RBA’s target zone of two to three per cent and should ease any pressure on the interest rate outlook,” he said.
Mr Sanders added: “The annual changes for the analytical series of trimmed mean and for the weighted median were 2.1 per cent and 1.9 per cent respectively. In the case of the trimmed mean, this is the same as for the previous quarter and is the lowest annual increase since the series was introduced in June 2003, and for the weighted mean, the lowest since June 2012.
“With inflation under control and a moderating housing market, home buyers can expect a stable outlook.”
[Related: Housing and financial services lift CPI]