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The latest CoreLogic residential construction costs report (CHIP – September quarter) claims that costs associated with dwelling construction continued to rise at a faster pace than inflation over the September quarter.
According to the CHIP index, construction costs rose by 1.1% over the quarter to be up 3.7% year-on-year.
The National CHIP index began to diverge from growth in CPI around 2003. Since then, quarterly inflation has averaged 0.6% growth, whereas quarterly growth in the building price index has averaged 1.1%:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.