To increase or not to increase?
14 May 10
To increase or not to increase?
John McCormack, Starr Partners CEO has urged the State and Federal Governments to keep their eye on the rising cost of living “As the average price of housing increases and the mortgage belt across Sydney’s Greater West tightens with every Reserve Bank interest rise we appeal to Federal and State Governments to remember affordability and the cost of living as they plan for the next budget”.
Mr McCormack was responding to feedback from his branches across Sydney as house prices continue to climb and yet property availability is diminishing. Their concern is shared across the country as all eyes turn to the Reserve Bank and the speculation that more interest rate rise are on their way. “The great Australian dream of owning their own home is alive and well but economic and interest rate uncertainty plays an increasingly spoiling role” noted McCormack
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At 2.9 per cent, Australia's annual rate of inflation has climbed to its highest point in 15 months, fed by rapidly rising prices for electricity, water, education and childcare.
The Bureau of Statistics figures for the year to March show the price of electricity climbing 15 per cent, water 14 per cent, childcare and health services 6 per cent and school fees 5 per cent. Also climbing fast are the price of beer and petrol, each up 6 per cent.
Offsetting the rapidly rising prices of Australian-produced services are sharply falling prices for imported goods. The price of children's clothes has fallen 6 per cent and the price of computers and audio visual equipment 16 per cent after adjustments are made for improvements in the power of computers.