Morgan Stanley Economist Highlights Concerns Over Australia's Housing Inflation

Morgan Stanley economist Chris Read has indicated that a comprehensive slowdown in Australia's housing market may somewhat alleviate concerns about the ongoing impact of construction costs and rents on inflation. According to Jin10, Read, who also serves as an equity strategist and economist for Australia at the investment bank, noted that housing inflation remains a significant concern as the country's core inflation rate continues to exceed the target set by the Reserve Bank of Australia. In a report, he emphasized that the focus in the coming months will be on the extent to which rising energy costs contribute to broader inflationary pressures and the signs from demand indicators regarding the ability of businesses to pass on costs.