People opening their insurance premium bills or whipping up eggs to hit their daily protein targets are still feeling hip-pocket pain, but the latest price gauge shows inflation is easing faster than economists and the Reserve Bank have been expecting.
Here are the details you need to know from the latest reading by the Australian Bureau of Statistics which showed headline inflation fell to 2.4 per cent in the December quarter, while the closely watched underlying measure slipped to 3.2 per cent.
One Up Building co-owner Rick Simmons says labour shortages are starting to ease. Credit:Wolter Peeters
Boon for bargain hunters as business slows for builders
It’s good news for those looking to buy a new home as builders have been offering discounts and promotional offers to entice customers in a subdued market, according to the ABS.
In the weakest annual rise since the June 2021 quarter, new dwelling building costs climbed 2.9 per cent over the 12 months to the December quarter, down from 4.8 per cent in the September quarter.
While Rick Simmons, co-owner and managing director of bespoke Sydney-based building firm One Up Building, has a steady pipeline of jobs, he has noticed an easing in the number of enquiries in the past six months.
“People are being more considerate of their choices,” he said, adding it was because customers faced high interest rates and stabilised property prices.
Simmons said while building material costs were still climbing, price pressures for most components were stabilising, including workers, who were becoming more available and competitive.
“Sub-traders are becoming more hungry for work and therefore more competitive with their pricing,” he said. “Trying to find extra labour resources was hard for a while, but those companies are now calling me.”
But with rents rising 6.2 per cent in the year to December, Master Builders Australia chief economist Shane Garrett said there was still a “gross mismatch” between supply and demand, especially for rental accommodation, with the cost of building a new home still 40 per cent higher than it was five years ago.
Read the whole story at SMH https://www.smh.com.au/politics/federal/here-s-what-you-need-to-know-from-the-latest-inflation-figures-20250129-p5l7yc.html