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Market Metrics: Inflation

• Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner

A fall in the inflation rates is good news for all growth assets (property and shares).

It means that it is more likely than not that the RBA (Reserve Bank of Australia) will cut interest rates again in 2025.

Click to read.

The bad new is that prices have not fallen because a reduction in the rate of inflation only means that the rate of increase in the prices for goods and services has slowed.

The cost of both goods and services today is high and remains high.

The continued excessive spending by the Federal Government on welfare programmes and public service employment plus the negative impact of the US Tariff War on Australian exports has all the ingredients for slowing economic activity (meaning, recession).

Irrespective of this, our job is not to speculate.

Instead, all we need to do is follow Benjamin Graham’s Value Investing Principles and remain invested according to our appetite for volatility and look to buy more quality assets when prices fall.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.