Core inflation falls in December
The Melbourne Institute inflation gauge slowed to just +0.2 per cent in December, thus looking to have recorded a cyclical peak of +5.9 per cent over the calendar year.
The core measure of inflation has reached a clear turning point, and is now dropping.
The trimmed mean measure plunged from 4.9 per cent to 4.2 per cent over the year to December.
Source: Alex Joiner
Construction and new dwelling costs are still soaring according to the official ABS figures, but those indices are likely turning negative in real time.
The rate hikes delivered to date won't be fully reflected until towards the end of this year, with the HIA now consistently sounding the alarm on housing supply.
It increasingly looks as though inflation will drop away just as quickly as it spiked, with the exception of rents, which are now soaring on low rental vacancies.
Source: Alan Kohler, ABC News
