Inflation hits highest level in 22 years

Inflation hits highest level in 22 years

Inflation has hit its highest level since the introduction of the GST, with the market to now eagerly watch for how the Reserve Bank manoeuvres the cash rate.

Many economists have forecast the first of a series of cash rate increases will take place in June.

Looking at one of the larger drivers for the inflation surge, new dwelling prices for purchases by owner-occupiers were up by 13.7 per cent during the year to March– the largest rise since September 2000, following the introduction of the GST.

Michelle Marquadt, head of prices statistics at the ABS explained newly built dwellings had been hit by “continued shortages of building supplies and labour, heightened freight costs and ongoing strong demand”.  more...

Theses indicators are looking at interest rate rises that could be quite significant, time to call Joondalup Home Loans for an urgent review.