ABC Radio Brisbane. 
Before we look at the concerns about the pushing up of house prices, the RBA, the Reserve Bank, announced yesterday no change to the cash rate. 
So what does this mean for you and me? 
Peter Tilse Head of Funds Management at NatGen. 
What it means for you and me is our mortgages stay the same, Steve, so nothing done there. 
What was interesting is the why, of course. 
If we sort of cast our minds back about a week or so, the monthly inflation data came out and prior to that data coming out, there was a 70% chance that the November meeting we would see a rate cut. 
So that’s pretty much off the table now. 
Post that inflation data, it’s the chance of November rate cuts next to none. 
We are just expecting probably a 30% chance of an interest rate cut sometime next year. What we saw in that data, our Netflix costs are up. 
So that’s annualised, it’s up 9.4%. 
So although that’s not something that we all need to have in our households, that was something that stood out, wage costs are up. 
And they look at it in terms of what they call unit labour costs and that just means 
that whatever we’re doing, what’s the output we’re getting for it. 
So if you think of building a house or whatever and your trade only comes for a couple of days a week and then serves the rest of the week, well, that’s not being super productive because you’re only getting them working two or three days a week instead of five days a week like we would ordinarily. 
Little things like that, but it all adds up and it all is all inflationary. 
But what we also saw too is that household demand is growing faster than they expected. 
So that means what we’re buying as you and I is increasing more so. 
And that was a bit of a shock because previously it was actually government spending. 
That’s been kind of driving the economy. The unemployment rate, so that’s still sitting around about that 4.2 percent level, which is, I guess, a bit higher than the sort of 4.1 we’ve been at. 
But it’s still considered around about that full employment level. 
So they are watching the employment data and that could possibly be the one thing 
that might trigger them moving in the future if that continues to sort of stagnate, I guess. And yeah, the economy is growing stronger than expected. 
So there really was no real reason to move. 
So they didn’t. And the inflation data is the monthly data. 
So it’s a bit more volatile, but they’ll be watching that quarterly number when it comes out toward the end of the month or later on in October. 
Now, the day before yesterday, Treasurer Jim Chalmers gave the very strong impression that he felt inflation, that the government, the actions of the government have conquered or beaten inflation. 
On the basis of the RBA’s lack of movement yesterday, is that a reasonable position? 
Probably not, because I’ve just said, you know, we’ve still got electricity costs rising and all these other sort of things rising. 
And these are the components that feed into it. 
So is it likely that electricity costs are going to continue to rise? 
I think so, yeah, because at the end of the day, the amount of changes that are happening within the grid with net zero, etc., increasing generation with whether it’s your rooftop solar or whether it’s wind farms, etc. 
Networks have to be upgraded. 
That all costs money. 
There’s demand for those types of components. 
But, you know, it all just adds up. 
It all just increases. 
So it’s short of government subsidies, which are band-aids. 
The real costs are still there. 
Now, you’re in commercial property. 
Let me ask you about residential property. 
The cost of housing is continuing to nearly 1% a month here in Brisbane in a month on month. 
That’s, you know, what does this reveal? 
Peter Tilse supply demand, Steve, anything that moves price, it’s all to do with supply and demand. 
We don’t have the supply coming online to fulfill the demand. 
So we’ve been this this number is expected to keep increasing because we just don’t have the bandwidth to increase supply. 
So and we’ve got half a million people coming into the country every year 
and they all need to live somewhere. 
And whether they’re all in Queensland or Southeast Queensland, they’re not. 
But yeah, and we’ve also got a lot of things being built at the moment, 
a lot of infrastructure like, you know, I mean, gosh, cast your eyes around the state and you’ve got things like the Tumbo Hospital being built,you got Hospitals being built, you’re getting road upgrades, all of these other sort of things which creates demand for concrete aggregate and steel and everything else. 
And it all just creates demand for those products. 
And again, the more demand for things, prices increase. 
And yeah, it’s it’s kind of like a bit of a vicious cycle. 
So bottom line, everything is very hot and we’re not talking about the weather. 
That’s a good way to put it. Yes. 
Peter Tilse, thank you very much for your time. 
Pleasure, Steve. 
Peter Tilse is head of funds management at NatGen.