Last month’s drop in interest rates was welcomed by borrowers Australia-wide, and many are now questioning when we might expect another one.
After examining recent Consumer Price Index (CPI) data, Real Estate Institute of Australia (REIA) experts suggest the figures support optimism.
According to President Leanne Pilkington, the data shows that the CPI rose 2.5% in the twelve months to January 2025, the same as for the 12 months to December 2024.
“The figures are in line with market expectations and are trending towards the RBA’s target range”, Pilkington said.
“The most significant price rises at the group level were housing (up 2.1%), food and non-alcoholic beverages (up 3.3%) and alcohol and tobacco (up 6.4%).
“Rents increased by 5.8% in the twelve months to January, down from a 6.2% rise December, and the lowest twelve month increase since April 2023, reflecting increased vacancy rates across most capital cities.
“The consistent downward trend in the figures support market expectations of further rate cuts during 2025 which would provide additional relief for borrowers following the cut this month”, Pilkington concluded.
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