The alarming rise in core inflation from about 2.4 to 2.7%over the last reported quarter (not including volatile items such as fruit and veg), if sustained into the next quarter, will put the RBA well on the path to massive rises in inflation and subsequent rate rises.
The government is doing it's best to make things more expensive that feed in to this core reading, despite a weakening economy (other than mining, which they are trying to weaken).
The message to me is, they are quite worried about the economy not to raise rates with a move like this in core inflation. This troubled economy does not sound like people will be in a buying and speculating mood for real estate, except in high overseas buyer demand areas.
