A slowing inflation rate to seven per cent is a welcome sign for builders according to Master Builders Australia.
The March quarter showed a deceleration in inflation according to ABS stats.
It indicated the quarterly pace of price expansion is at is lowest since late 2021.
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“Encouragingly, there has been a significant deceleration in new home purchase costs,” Master Builders Australia Chief Economist Shane Garrett said.
“Previously, this had been one of the biggest sources of inflation pressures.
“It shows that further efforts to reduce the cost of creating new homes will have much wider benefits in terms of dampening inflation.
“Less favourably, rental inflation surged to 4.9 per cent and is now rising more quickly than at any time since 2009.
“Higher interest rates have contributed to worsening rental costs as many landlords have passed mortgage interest increases on to tenants.”