MORGAN STANLEY economist Chris Read said a broad slowdown in Australia’s housing
market could partly offset concerns that construction costs and rents will
continue to push up inf. Read, who also serves as the bank’s equity strategist
and Australia economist, said housing inflation is a key worry given the
country’s core inf rate remains above the RESERVE BANK OF AUSTRALIA’s target. In
a report he wrote that over the coming months the BUZZ will be the extent to
which rising energy costs feed into broader inf pressures, and to look to demand
indicators for signs of how much firms can pass through costs.
