The Real Growth in Dwelling Values

The consumer price index (CPI) for June 2017 was released earlier this week showed that over the quarter headline inflation was recorded at 0.2% which took inflation to just 1.9% over the year to June 2017.  Although annual headline CPI was temporarily within the Reserve Bank (RBA) target range of 2% to 3% over the March 2017, it has been below target for 10 of the past 11 quarters.

Adjusting dwelling value growth for inflation provides valuable insight into the…