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Australia to taste deflation with record CPI fall – The Australian Financial Review
Childcare, petrol, rents and healthcare premium deferrals, and travel bans will all contribute to a steep fall in prices in the June quarter.
Westpac senior economist Justin Smirk said “housing is now deflationary” because of reported rising vacancy rates, rent deferrals, rent holidays and rent reductions. The bank is forecasting a 0.7 per cent drop in rents, which Mr Smirk said would be another record.
House prices are also under pressure. “Falling demand would have resulted in price discounting and the squeezing of developer and builder margins,” he said. The 0.5 per cent decline in dwelling purchase prices that the bank is expecti…
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