In today’s Wealth Coffee Chats, Alex breaks down the latest inflation numbers released for October—showing a sharp rise to 3.8%, along with a slight drop in unemployment. These two metrics form the backbone of the RBA’s interest rate decisions, and together they paint a picture every investor and mortgage holder needs to pay attention to.
Alex walks through the inflation components driving the spike—housing, electricity, and services—while exploring how these rising costs could shift the conversation away from anticipated rate cuts and potentially back toward rate increases in 2026. He also covers how these trends may affect property demand, equities, bonds, superannuation, everyday expenses, and your personal cash flow.
This episode is your practical guide to preparing for what may be coming next as the economy heads into Christmas and into the new year.
Episode Highlights:
- Inflation jumps to 3.8%, reversing the downward trend seen earlier in the year.
- Unemployment drops from 4.5% to 4.4%—a small shift with big implications.
- Why rising inflation may delay rate cuts and reopen the door to potential hikes.
- Breakdown of inflation components: housing (5.9%), electricity, services, and insurance stabilisation.
- How markets may respond: equities cooling, defensive assets like bonds and term deposits holding strong.
- What rising rates could mean for property investors amid ongoing supply shortages.
- Practical steps: stress-test your mortgage, plan for holiday spending, and prepare your finances for early 2026.
Stay informed and stay prepared—this episode helps you understand the economic signals that could shape your investment decisions in the months ahead.
