Monitoring Desk
MELBOURNE: Australia’s inflation rate fell more than expected in the June quarter, increasing the likelihood the Reserve Bank will extend its interest rate pause next week. However, rents rose at their fastest quarterly pace in 35 years.
The headline consumer price index for the April-June period was 6% higher than a year earlier, the Australian Bureau of Statistics said on Wednesday reported The Guardian.
That compared with the 6.2% pace expected by economists and was down from 7% in the March quarter.
Prices rose 0.8% for the June quarter alone, easing from 1.4% in the previous three months. The quarterly increase was the lowest since the September quarter of 2021.
The economy is sending mixed signals, with consumer and business confidence low or falling. Employers, though, were still adding jobs at a strong clip in June, leaving the jobless rate hovering near half-century lows.
As for capital city unit prices, the picture is much the same. Sydney is the most expensive cities for renters with the median unit price coming in at $670 per week, followed by Canberra ($550 per week), Brisbane ($530 per week), and Darwin ($515 per week), as per the Mozo.com.
Heavy competition has left many applicants feeling they have to bid above the advertised price or offer to pay several months’ worth of rent in advance just to secure a rental property, despite prohibitions on rent bidding.
Rents typically can’t be increased during a fixed-term agreement unless this is stated upfront. On the other hand, renters on a periodic agreement (also known as a month-to-month agreement) can see their rent go up every six months so long as their landlord gives 60 days notice.
