Reserve Bank of Australia raises rates, but rental and insurance inflation persist due to housing shortages and extreme weather events.

The fight against overall inflation shows progress, but rent and insurance inflation persists, as housing shortages, strong rental demand, extreme weather events, and risk-averse reinsurers contribute to ongoing pressures. Despite the Reserve Bank of Australia raising interest rates to 4.35%, both the bank and the federal government face limitations in addressing these specific inflation aspects in the short term.

July 06, 2024
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