Interest rate hike on cards this month
Friday 16 July 2004
Rising inflation is all but certain to lead to another hike in interest rates by the end of the month.
By The LandlordThe consumers price index rose 0.8 per cent in the June quarter, the steepest such increase for three and a half years, pushing the annual rate to 2.4 per cent from 1.5 per cent in March, Statistics New Zealand figures show.
If international air fares had not dropped (21 per cent during the past year), the inflation rate would already be 3 per cent.
Construction costs remain a hotspot, rising 1.9 per cent in the quarter and 8.8 per cent over the year. Of the construction companies reporting higher prices, 96 per cent cited higher components costs, 78 per cent higher subcontractors' charges and 65 per cent rising labour costs.
Although prices of existing homes are not included in the CPI, the buoyant housing market is reflected in real estate agents' fees, which rose 4.4 per cent, or 21.4 per cent, over the year.
Read More - Opens in a new window
Commenting is closed
The SuperCity turned in its strongest housing sales performance in a July for five years last month, new data from Auckland’s biggest real estate agency reveals.
Steady declines in value growth are becoming evident – as QV’s latest data reveals – and that suggests the housing market’s resurgence could be coming to an end.
ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.