The Real Estate Institute of Australia believes that Reserve Bank of Australia should think about acting on interest rates.


The institute said that ABS data shows the Consumer Price Index (CPI) rose 2.2% in the 12 months to November 2024, up from 2.1% in both October and September.


Real Estate Institue of Australia (REIA) president Leanne Pilkington said that while the increase remains modest, the figures add weight to growing calls for the RBA to consider easing interest rates.


“The annual movement for the monthly CPI excluding the volatile items of fruit and vegetables, automotive fuel and holiday travel and accommodation, rose 2.8% in November, up from the October figure of 2.4% and 2.7% for September,” she said.


“The important analytical series of annual trimmed mean inflation went up by 3.2% in November, down from 3.5% in October and the same as in September.


“Whilst the monthly CPI indicator is not as comprehensive as the ABS’s quarterly inflation data as it only updates prices for around two-thirds of the consumer price index basket, the figures are in line with market expectations and are below the RBA’s forecasts of 2.6% for headline inflation and 3.4% for annual trimmed mean inflation for the December 2024 quarter.


“The most significant price rises at the group level were recreation and culture (up 3.2%), food and non alcoholic beverages (up 2.9%) and alcohol and tobacco (up 6.7%).


“Rents increased by 6.6% in the 12 months to November, down from 6.7% in October and the same as in September.


“The consistent downward trend in the figures support market expectations of a rate cut at the next RBA meeting in February which would provide a welcome relief for borrowers.”