According to the latest report from the Australian Bureau of Statistics, the monthly measure of inflation remained steady in January, recording a 3.4 per cent increase. However, the report also shows encouraging signs that a key measure of price pressures is starting to ease.
While housing, food, and insurance services continue to experience price increases, there were falls in other areas such as holiday travel, recreation, and culture. Specifically, the monthly inflation for food and non-alcoholic beverages increased to 4.4 per cent from 4 per cent in December, largely due to higher-priced fruit and vegetables.
Food, fuel and construction prices fall
Will interest rates begin to fall?
Mortgage Broker What If We Finance believes this is good news for home loan interest rates as inflation is a key driver impacting interest rates and ultimately home loan affordability.
The downward trends in the inflation figures means sooner rather than late interest rates will fall.
