Real Home Values Are Falling Across Most Capital Cities

Consumer Price Index (CPI) data for the December 2018 quarter was recently released by the Australian Bureau of Statistics (ABS).    The data showed that over the quarter, CPI increased by 0.5% to be 1.8% higher over the past year.  The Reserve Bank has a target range for underlying inflation of 2% to 3% over the business cycle and inflation is currently below the target range.  When housing data is adjusted for the effects of inflation, it provides valuable insight, especially in the…