These figures are fuelling calls for the Reserve Bank of Australia (RBA) to consider easing interest rates at its next meeting.
Real Estate Institute of Australia (REIA) President, Leanne Pilkington, said that while the rise is incremental, it aligns with market expectations and falls below the RBA’s forecasts.
“The annual movement for the monthly CPI, excluding volatile items like fruit and vegetables, automotive fuel, and holiday travel, rose 2.8 per cent in November, up from 2.4 per cent in October and 2.7 per cent in September,” she said.
Ms Pilkington highlighted that the annual trimmed mean inflation, a key analytical measure, increased by 3.2 per cent in November, a decline from October’s 3.5 per cent figure and consistent with September’s rate.
She pointed out that while the ABS’s monthly CPI indicator updates prices for only two-thirds of the consumer price index basket, the data reflects a downward trend in inflationary pressures.
Significant price rises in November were recorded in recreation and culture (up 3.2 per cent), food and non-alcoholic beverages (up 2.9 per cent), and alcohol and tobacco (up 6.7 per cent). Rents rose by 6.6 per cent over the year to November, a slight drop from October’s 6.7 per cent.
“The consistent downward trend in the figures supports market expectations of a rate cut at the next RBA meeting in February,” Ms Pilkington said.
“Such a move would provide welcome relief for borrowers.”
