You've probably heard the media, politicians and economists talking about "the inflation rate" as though every Australian is experiencing the same increase in their cost of living.
But the official CPI figure may bear little resemblance to what is happening in your household.
Because here's the uncomfortable truth. That headline number is an average. It's a blend of everything from lettuce to laptops, and if your money goes on housing, health care, insurance and electricity rather than imported gadgets and clothing, your real cost of living has probably been running well above what the news is telling you.
Today we're going to pull that number apart. We're going to look at who actually suffers the highest inflation in this country, why government policy is doing more damage to your cost of living than any war or supply shock, and why understanding your own personal inflation rate matters just as much to your wealth-building strategy as your choice of property.
By the end of this episode you'll know exactly where you sit on what my guest calls the inflation pyramid, which categories of spending are quietly eating your returns, and why housing costs in particular have become one of the clearest examples of government-made inflation in the country.
My guest today is Ashley Owen, Principal of Owen Analytics and one of the most respected independent economists and investment analysts in Australia.
Takeaways
• Official CPI figures hide big differences between household spending patterns and real cost pressures.
• Renters face stronger inflation because more of their budget goes to utilities, taxes, and housing costs.
• Government-driven costs push housing inflation higher through taxes, regulation, and construction bottlenecks.
• Imported goods often offset inflation, but local services keep rising through wage and productivity pressures.
• Insurance, healthcare, and education climb faster because they rely heavily on expensive Australian labour.
• Personal inflation rates matter more than averages when planning retirement withdrawals and long-term cash flow.
• Higher inflation erodes mortgage balances over time, benefiting borrowers who own quality assets.
• Delayed rate cuts and political spending can keep interest rates higher for longer.
• Land scarcity in concentrated cities pushes up property values and construction costs.
• Wealth plans must outperform inflation or purchasing power steadily shrinks over decades.
Links and Resources:
Answer this week's trivia question here - https://www.propertytrivia.com.au/
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Ashley Owen, Director of Owen Analytics https://www.owenanalytics.com.au/
Articles mentioned in the podcast:
· Housing inflation higher than CPI
https://www.owenanalytics.com.au/2026jul20-housing-inflation
· What's your personal inflation rate?
https://www.owenanalytics.com.au/2026jul14-infl-categ
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About The Michael Yardney Podcast | Property Investment And Wealth Creation Australia
The Michael Yardney Podcast is one of Australia's leading property investment podcasts, helping investors understand the Australian property market and build long-term wealth through strategic property investing.
Each week we explore:
• Australian property market updates
• Property investment strategies in Australia
• Melbourne property market trends
• Sydney property market forecasts
• Brisbane property investment opportunities
• Capital growth property strategies
• Property cycles in Australia
• Negative gearing and tax strategy
• Interest rates and their impact on property
• Buyer's agent insights and investment planning
If you're serious about building a high-performance property portfolio and creating financial freedom through real estate, this podcast will give you the clarity and strategy you need.
Learn more at:
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