Why Australia’s long-suffering renters are not alone
Rents are soaring not only in Australia but also in the US, UK and Canada, preventing inflation from declining closer to central banks’ targeted levels.
London | Surging rents across many developed economies are proving to be a stubborn hurdle for central banks as they struggle to nail down inflation once and for all this tightening cycle.
In the US, UK, Canada and Australia, rapidly rising housing costs – which have a hefty weighting in consumer price index baskets – are preventing inflation from declining closer to central banks’ targeted levels. The danger is that workers will demand even fatter pay cheques to deal with the cost-of-living squeeze, undermining the inflation fight even further.
