The moderation in house price growth in July will be welcomed by the Reserve Bank, which has been worried that the surprise pick-up in prices this year could boost consumption and keep upward pressure on inflation.

CoreLogic’s national house price index shows prices rose 0.7 per cent in the month, marking the fifth consecutive month of price rises, which is impressive given the barrage of interest rate increases over the past 14 months. Low numbers of houses for sale have been seen as a key driver of the growth no one – including the RBA – saw coming.