{"id":166080,"date":"2024-11-03T12:30:20","date_gmt":"2024-11-03T01:30:20","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=166080"},"modified":"2024-11-01T12:39:00","modified_gmt":"2024-11-01T01:39:00","slug":"inflation","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/inflation\/","title":{"rendered":"House prices vs Inflation in Australia 2024"},"content":{"rendered":"

It wasn\u2019t long ago that the media was filled with talk of a 40-year high in inflation, soaring interest rates vs. inflation, a potential property market crash<\/a>, and our economy falling into an inevitable recession.<\/p>\n

<\/div>Not to mention Russia\u2019s war with Ukraine and the Middle East crisis causing a spike in energy prices and fuelling supply chain issues.<\/p>\n

Thankfully, Australia\u2019s inflation peaked in December 2022 at a heady 7.8% and is slowly coming down, albeit with some bumps along the way.<\/p>\n

But as it's unlikely to fall into the Reserve Bank of Australia (RBA)'s preferred range of 2-3% until 2025 it's worth understanding a bit more about it.<\/p>\n

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Note: <\/span>We know that the COVID-19 pandemic saw our government overspend to keep our economy afloat\u2014a stimulus that was quickly reversed\u2014but it set the scene for a strong inflation rate and a cost of living surge as soon as we exited the lockdown period of 2020-21.<\/p><\/div><\/div>\n

In this blog, I\u2019ll explain what causes inflation, discuss whether inflation is good or bad, and what it means for house prices.<\/p>\n

But before I do, let me start with one very clear message:<\/p>\n

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Tip: <\/span>Always look at the big picture.<\/p><\/div><\/div>\n

When we\u2019re faced with economic problems (or any problem), there are two ways to view things:<\/p>\n