Australian inflation figures: good news as CPI falls
Australian home borrowers could be spared further rate hikes as inflation moderates to 4.9 percent in July.
The monthly consumer price index showed that headline inflation fell from an annual rate of 5.4 percent in June.
Prices for petrol, fruit and vegetables have fallen over the year as electricity and gas bills have risen by double digits and rents have continued to rise, according to new figures from the Australian Bureau of Statistics released on Wednesday. released.
Headline inflation is still above the Reserve Bank’s target of 2-3%, but moderation in price pressures could keep cash rates at an 11-year high of 4.1% after 12 rate hikes since May 2022.
Philip Lowe will chair his final board meeting as RBA governor next week before handing over to his deputy Michele Bullock on Sept. 18 after imposing the toughest rate hikes since 1989.
Australian home borrowers could be spared further interest rate hikes as inflation eases to 4.9 percent in July (pictured is a shopper from Sydney Woolworths)
Despite a weaker Australian dollar, petrol prices fell 7.6 percent over the year, following some moves in crude oil prices (pictured is a petrol station in Sydney)
Despite a weaker Australian dollar, petrol prices fell 7.6 per cent over the year following some moves in crude oil prices that have pushed unleaded prices back below $1.90 a liter in the capitals.
Prices for fruit and vegetables fell by 5.4 percent annually, but prices for bread and cereals rose by 9.9 percent, while prices for dairy products rose by 12.7 percent.
Housing costs are still rising, with rents rising by 7.6 per cent over the year, due to an influx of international students to Sydney and Melbourne in particular.
Electricity prices rose by 15.7 percent, while gas prices rose by 13.9 percent.
Philip Lowe will chair his last board meeting as RBA governor next week before handing power to his deputy Michele Bullock on September 18 after imposing the toughest rate hikes since 1989.
Underlying measures of inflation, which exclude volatile price items, were still on the high side.
The consumer price index was 5.8 percent in July, when gasoline, fruit prices and holiday accommodations were removed from the official goods calculations.