Inflation Is Rising Again – Here’s What That Means for Property Investors

Why It Matters

Higher and persistent inflation, driven by energy and building-cost pressures, raises the likelihood the RBA will delay cuts or tighten again, which would increase borrowing costs and weigh on property prices, rents and investor returns.

Summary

Australia’s inflation has ticked up again, with headline CPI steady at 3.8% and the RBA’s preferred underlying measure rising to 3.4%—the highest since October 2024. A key driver is a sharp 21.5% annual surge in electricity prices after temporary subsidies expired, while renewed oil-price risk from Middle East tensions could add further upside. Housing-related indicators are mixed: rental growth eased slightly to 3.9%, but new dwelling construction costs are rising, squeezing supply. Economists warn the data complicates the RBA’s path and keeps the prospect of further tightening on the table.

Original Description

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Inflation is making a comeback.

Just when many Australians were starting to breathe a little easier, the latest data suggests the fight against inflation isn’t over yet.

And if inflation is rising again, the big question is… what does that mean for interest rates? And more importantly, what does it mean for our housing markets?

The latest figures from the ABS show annual headline inflation holding at 3.8 per cent, but underlying inflation - the RBA’s preferred measure - ticking up again to 3.4 per cent and still sitting outside the 2 to 3 per cent target range ..

In this week's Property Insider Chat, Dr. Andrew Wilson and I dig into what has actually caused inflation to rise.

We also discuss the latest statistics on average weekly earnings and examine how our auction markets performed amid a surge in listings during the early autumn selling season.

And, as always, we’ll go beyond the headlines and explain what this means for you as a property investor or homebuyer in today’s market.

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You can also read the full article on Property Update: https://propertyupdate.com.au/property-news-headlines-forecasts

If you're looking for Direction, Certainty, and Wealth Producing Results in property and wealth creation why not get my team at Metropole to discuss your options: https://metropole.com.au/enquiry/

#PropertyInsiders #MichaelYardney #DrAndrewWilson #AustralianPropertyMarket #PropertyInvestment #RealEstateInsights #MarketUpdates #propertytrends

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About Property Insiders

Hosted by Michael Yardney and respected property economist Dr Andrew Wilson, Property Insiders delivers research-based analysis of Australia’s housing markets.

We unpack:

• National and capital city property price data

• Weekly auction results

• Housing supply and demand metrics

• Population growth impacts on property

• Market momentum indicators

• Regional vs capital city performance

• Property market turning points

• Short-term trends vs long-term fundamentals

If you want reliable Australian property market analysis grounded in data rather than speculation, Property Insiders delivers informed commentary to help investors stay ahead of the cycle.

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