Australia's Inflation Rate Hits Three-Year Low

Australia's recent inflation rate has dropped to its lowest level in three years, with annual headline inflation reported at 2.7% for August 2024, down from 3.5% in July. Treasurer Jim Chalmers hailed this decline as a result of effective government cost-of-living measures, countering opposition claims of artificially lowered inflation. Concurrently, the Labor Party is reconsidering its stance on negative gearing, a move that could significantly impact housing affordability and investment strategies. The Reserve Bank of Australia has maintained interest rates at 4.35%, with Governor Michele Bullock emphasizing that underlying inflation remains a concern. As the government prepares for the budget outcome, discussions around negative gearing reform may shape housing policy ahead of the next election. Overall, these developments highlight a critical intersection of inflation management and housing market policies in Australia.