Australian households are in the midst one of the most financially difficult periods in our nation’s recent history, as the twin forces of high inflation and the largest rise in relative rates on record combine.
There was hope of a silver lining for mortgage holders, that at least the rise in mortgage rates was at an end.
Amidst the backdrop of a deteriorating domestic economy, global geopolitical upheaval and still uncomfortably high inflation, the path for the nation’s economy to avoid a recession has become an increasingly narrow and risky one. Governor of the Reserve Bank of Australia Michele Bullock talks of a narrow path but what does that actually mean? Picture: NCA NewsWire / Martin Ollmanhad expanded by 0.4 per cent in the second quarter of this year and by 2.1 per cent in the last 12 months. But behind the headlines the internals were quite a bit less positive that the headline number would suggest. In per capita terms the economy is now in a recession and GDP per hour worked had declined by 2.
For the RBA’s preferred inflation metric, the trimmed mean, it was up 1.2 per cent for the quarter and 5.2 per cent for the year. In their most recent round of forecasts the RBA had pencilled in a reading of 0.9 per cent, so this was a significant surprise to the upside.Its also worth noting that the recent figure was distorted significantly by the impact of electricity and childcare subsidies, as well an outsized increase to rent assistance.
Various investigations of this divergence have found that over time eventually the two converge, with the ABS index catching up with the price growth seen by private providers. A recent analysis found that the lag between the Domain asking rents data and the ABS CPI rental price component was around 18 months.
In her first public remarks as RBA Governor, Michele Bullock warned that it was possible that conflict in the Middle East could lead to a slowdown in the global economy and that this could potentially also hit the Australian economy.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Club pro who became overnight golf sensation locked in for Australian OpenGolf: Aussie Minjee Lee has taken out her playoff to claim the BMW Championship.
Read more »
Teammates rally around Aussie cricket great in surprising struggleCricket: Aussie star Glenn Maxwell has branded the mid-game light shows at the World Cup as the 'dumbest idea for cricketers'
Read more »
Aussie cricket legend’s surprising struggleThe Australian cricket community is rallying around Greg Chappell to help the cricket legend’s financial struggles.
Read more »
Iconic Aussie song to be adapted into movieAustralian streaming platform BINGE has announced it will develop its first original feature film..
Read more »
Aussie star felt ‘exposed’ in sex scenesWentworth actress Kate Box has revealed that she’s felt “exposed in the wrong ways” while filming sex scenes in the past.
Read more »