What happened
ABS data shows trimmed mean inflation, the Reserve Bank's preferred underlying metric, stood at 3.6 per cent in the 12 months to July 2026, remaining above the 2 to 3 per cent target. Housing costs rose 6.8 per cent in the year to June 2026 due to higher electricity, new dwelling construction, and rental inflation.
Why it matters here
For Australian property investors and SMSF trustees, sticky inflation prevents immediate cash rate cuts and maintains elevated debt servicing costs. High construction costs and constrained rental supply continue to underpin property yields, but reduced borrowing capacity limits capital growth potential in the near term.
What to watch
Monitor upcoming ABS quarterly CPI announcements and national rental vacancy data for signals on housing inflation trends.
Source
elitewealthcreators.com