What can homeowners expect as inflation drops to lowest rate in three years?

Underlying inflation has dropped to its lowest rate in three years in the December quarter. Economists say it's strengthening the case for a pre-election rate cut next month.

Treasurer Jim Chalmers at a press conference. Source: AAP / JONO SEARLE/AAPIMAGE

Key Points

• Underlying inflation for the year has landed at 3.2 per cent, lower than market expectations.
• Economists, like Cherelle Murphy from E-Y Oceania, are now pricing in up to a 90 per cent chance of a rate cut next month.
• As the election is due to be called within months, economists are increasingly concerned that any rate relief could be short-lived as the parties spend big to win votes.

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What can homeowners expect as inflation drops to lowest rate in three years?

SBS Filipino

31/01/202504:57

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