Inflationary headwinds are buffeting the sails of Australia’s property market and the central bank is trying to put the handbrake on the runaway cost of living.
Australia’s consumer price index increased 5.1 per cent over 12 months to April 2022, led by construction and fuel prices. But the ripple effect of inflation is far-reaching in the economy, as New Zealand grapples with 7.5 per cent inflation, and the US has surpassed 9 per cent.
Investors are increasingly looking to hedge against inflation and are moving their money to commercial markets for safe harbour, according to PGIM Real Estate head of Asia Pacific investment research Cuong Nguyen.
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