CBA’s head of Australian economics, Gareth Aird, appeared on Sky News over the weekend where he warned that the Albanese Government’s record immigration push will push rents higher, while putting downward pressure on wages.
In response to Ross Greenwood’s statement that “bringing in such a large number of migrants over the next few years does take some of the potential sting on the potential push on wages”, Aird agreed, while also pointing out that it will push up residential rents and thereby drive up inflation:
“It [migration] does from a wages perspective, but it’s probably worth keeping in mind that in the short-run, it will put further upward pressure on rents. And rents are part of the CPI basket”.
