Wednesday, 27 November 2024

Apartment building picks up in Melbourne

Inflation stays at 2.1 per cent 

The monthly inflation gauge came in significantly lower than expected at 2.1 per cent over the year to October.

However, the headline figure was pushed down by a massive 35 per cent drop in heavily subsidised electricity prices.

The trimmed mean inflation figure was stuck at 3½ per cent over the year. 

Inflation excluding volatile items continued to decline to 2.4 per cent over the year, from 3 per cent in August, and 2.7 per cent in September. 


Progress has been bumpy, perhaps as expected, but progress there has been.

Shane Wright from Fairfax took such a look on X:


CBA revised down their forecast for Q4 core inflation from 0.7 per cent to 0.6 per cent, with risks skewed to the downside.

Markets were broadly unmoved by the figures, which were broadly as expected.

Construction work done was a bit stronger than expected, with residential building work done just fractionally (0.1 per cent) higher than a year earlier in the September quarter.

House building has been strong in Western Australia and Queensland, and there has been a lift this year for apartment and townhouse building in Victoria. 

That said, with projects costing around 50 per cent more than pre-pandemic, the same dollar value of work is producing far fewer units and apartments than before. 


Overall, residential building remains quite subdued for the time being, however.

On the other hand, engineering construction has lifted by 6 per cent over the past year, and is approaching decade highs.

Infrastructure and transport building has been enormously strong in New South Wales, and mining investment in Western Australia has also boomed along. 


Markets weren't overly excited by the figures with the 3-year bond yield trading at just below 4 per cent, and the Aussie dollar trading at 64.8 US cents.

The Reserve Bank of New Zealand wimped out of a super-sized rate cut and dropped interest rates by 50 basis points from 4.75 per cent to 4.25 per cent.  

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