Australian home prices surged to fresh record highs in August, driven by rising buyer demand, constrained supply, and the Reserve Bank’s rate-cutting cycle, marking the seventh consecutive monthly gain for national housing values.

Headline inflation rose to 2.8%/yr in July, a much bigger rise than anticipated. Electricity rose much more than expected due to the timing of rebates in NSW and the ACT, and travel prices were much stronger than expected.

The Minutes for the Monetary Policy in August show the evolution in risks for RBA. Much of this focus for 2025 has been ensuring inflation returns sustainably to the mid‑point of the RBA’s target band.