Sydney and Melbourne house prices could fall by more than 10 per cent this year and drop again in 2023, ANZ economists predict as data shows inflation pressures are even more acute than feared | swrighteconomy
Sydney and Melbourne house prices could fall by more than 10 per cent this year and drop again in 2023, one of the nation’s biggest lenders has predicted, as data shows inflation pressures are even more acute than feared.
“Despite these large rises, we know that debt is concentrated among high-income households who are more likely than others to have large savings buffers and more income to cover inflation and interest rate changes.”The RBA has increased official interest rates by 1.75 percentage points since May as it seeks to reduce inflation pressures across the economy.
The ABS estimates inflation measured at a monthly level reached 6.8 per cent in June. Prices for petrol, new dwellings and food all contributed to the rate, which would be the highest since early 1990. Minutes of the RBA’s August meeting, at which it lifted the cash rate by half a percentage point, show the central bank believes other issues are likely to contribute to inflation pressures across the economy.