2-Sense: This is why the 1.2 million homes Housing Accord targets won't be met

2-Sense podcast

Economist Gareth Aird of CBA posited this week that headline inflation will hit the Reserve Bank's 2 to 3 per cent target this quarter (Q3 2024), in part helped by government cost of living subsidies.

While this is partly an artificial outcome, the slower increase in consumer prices should help to reduce inflation expectations, and also has an impact on wages and prices that are in part indexed to the official rate of inflation, highlighted Aird. 

There have been lots of announcements about housing targets over recent months, but some of the challenges may be insurmountable over the next five years, as Chris Bates and I discussed on the podcast this weekend.

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