In encouraging news for consumers, data released this week revealed a fall in the rate of inflation, as people finally start to curtail their spending on extravagances such as lunch and a room to sleep in.
Economist Chris Lou said it was promising to see out-of-control spending finally ease in the economy.
“We’ve been in a sustained period of households splurging on three meals a day, sometimes with snacks as well. But now that the obsession with regular food seems to be coming to an end, we’re thankfully seeing some heat come off prices” he said.
He predicted rental prices would also start to fall as more people chose to live in their cars. “It’s great to see that excess demand finally starting to ease”.
After two years of high inflation, Commonwealth Bank economist Susan Foley said markets would be relieved to see the latest data. “As more people start to cut back on little luxuries like eating dinner and sleeping on a bed, we’ll start to see more stability in the markets which is good news for investors”.