Inflation to rebound in August
Been travelling around a bit over the past fortnight - hence the lower blog post output - speaking at events in Port Macquarie, Newcastle, and Sydney.
Next stop is Victoria for the next week (it's also Grand Final weekend), but there's still time to join the Rask Roadshow Sydney event, which is now close to selling out.
Get your tickets here.
It's been a rather slow news week, but tomorrow the ABS releases the August figures for monthly inflation.
This is likely to show a rebound from last month's sharp drop, driven by fuel, insurance, and some other services costs.
In other news, home values continue to recover and rise solidly according to CoreLogic's index:
Source: CoreLogic
CoreLogic wrote this week about the NHFIC forecast of a dwelling deficit of 175,000 by 2027, particularly in the unit market, driven by above average population growth and below average dwelling completions.
As interest rates begin to fall, the vacuum in unit supply is expected to fuel a stronger price boom in the more affordable unit market over the next 3 years.
You can the article here.
KPMG also released its latest forecasts, predicting solid dwelling price growth for all capital cities ahead through 2024 and 2025.
Population growth is increasingly becoming a political issue, but is likely to naturally slow over the period ahead.
The massive rebound in population growth has largely been driven by the return of international students and a record 2.55 million people in Australia on temporary visas.
Looking ahead, I expect to see population growth easing back to under 400,000 per annum, or a more sustainable 1½ per cent per annum.
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The ASX 200 opens at 7,040 this morning, a little below the level seen in February 2020.
It's been a wild ride to hell and back since then!
