ChatGPT's take on Australian inflation

Three charts to explain this month's CPI print with commentary written with the help of ChatGPT.

So, with all the excitement buzzing around ChatGPT, we decided to put our trusty tool to the test and have it take a peek at the latest monthly CPI in Australia from Macrobond. Check out its commentary below:

It looks like housing inflation is draining our wallets, with rent prices refusing to budge! While overall inflation has fallen to 6.8% y/y, the housing market is still a heavy weight on the print. Housing inflation is currently sitting at a whopping 9.9%. While it might be calming down slightly compared to the last 11 months, it's still elevated enough to make a dent in our wallets. 

Australia Monthly CPI Contribution

On the bright side, travel and accommodation costs are seeing a post-holiday season drop. And here's some sweet news – food and beverages appear to have peaked, with meat & seafood and fruit & vegetables falling from their summer 2022 highs.

Australia Monthly CPI Inflation YoY % Heat Map Breakdowns

Want to get ahead and see where housing inflation is headed? Our team built two leading indicators using the SQM Research's Housing Rental (Green) & Asking Price (Purple) Indices y/y change. Brace yourselves – rents remain sticky with a correlation of over 80% since 2016! But new dwelling purchases should be coming down over the next eight months. 

Australia CPI Leading Indicators - SQM Research Housing Rental & Asking Price Indices

Get ready to say goodbye to your pay cheque, folks! Based on the above indicators, it looks like rents aren't going away anytime soon. And with vacancy rates at an all-time low (1.05% as of Feb 2023, compared with 10-year average of 2.2%), it's safe to assume your rent will be going up again come renewal time.

Looks like we'll be pinching pennies for a while longer - let's hope it pays off!

All written and electronic communication from Macrobond Financial AB is for information or marketing purposes and does not qualify as substantive research. All opinions expressed in Macrobond webinars are those of the presenters and do not reflect the views of Macrobond Financial AB. The views and opinions expressed here are those of the author/s and may not represent the views of the company.

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