Australia’s economic data this week paints a mixed picture for households—especially mortgage holders navigating high living costs.

🔹 Inflation rises again
The CPI increased to 3.8%, driven by higher housing, food and recreation costs. Trimmed mean inflation also edged up, signalling persistent price pressure.

🔹 Stronger labour market
Unemployment dropped to 4.3%, with 42,000 new jobs added and full-time work climbing. A major bank now expects interest rates to stay on hold through 2026, offering stability but little relief for borrowers.

🔹 Western Sydney leads 2026 growth forecasts
New research predicts suburbs like Blacktown, Penrith and Liverpool will be among Sydney’s top performers next year, supported by the upcoming Western Sydney Airport and major infrastructure.

🔹 GST fairness under the spotlight
With over $80 billion collected annually, new analysis shows the GST system disproportionately impacts some households—adding to cost-of-living strain.

What it means for you

Rates may remain higher for longer, inflation is still sticky, and household budgets remain under pressure. But select markets—particularly in Western Sydney—are showing strong upside heading into 2026.

If you’re reviewing your borrowing capacity, loan structure or investment strategy, staying informed is key to making confident decisions in a shifting environment.