Australia’s primary inflation driver is always non-tradable:
And guess what drives it? From Westpac:
Non-tradable inflation has been killed by the high dollar. And with income growth still falling, the residential construction boom about to flood the market with supply killing rents, then the construction boom itself set to roll over by year end killing construction costs, and all the while house prices slowing and stalling, where do you think this chart is going next?
