Inflation hits four-year low of 2.1 per cent, puts pressure on RBA for interest rate cut
The lowest annual inflation rate in the four years increased the pressure on the reserve bank to cut the interest rate when they were gathered within the next two weeks.
On Wednesday morning, the Australian Statistical Office reported that the title inflation is 0.7 percent in June quarter and reduced the annual rate to 2.1 percent. It was 2.4 percent in March quarter and the lowest inflation rate since the beginning of 2021, when it was in the midst of the country’s pandema.
Important measures of the underlying inflation increased by 0.6 percent in the quarter and the annual rate reached 2.7 percent.
As a result of the underlying inflation, it was the lowest level since December 2021.
Reserve Bank Governor Michele Bullock announced a surprise decision not to reduce rates at the beginning of this month, while these three -month inflation numbers will be a key factor in determining when home buyers will benefit from more interest rates.
A key source of inflation has been the housing construction sector. Prices in this region increased by 0.4 percent in the quarter, while annual inflation fell only to 0.7 percent. In September 2022, he reached the summit with 20.7 percent.
Reserve Bank Governor Michele Bullock will be under pressure to reduce interest rates after the publication of June quarter inflation figures on Wednesday morning.Credit: Bloomberg
One of the biggest price increases in the quarter was 8.1 percent of electricity due to state and federal energy reductions used by consumers.
Michelle Marquardt, “Electricity rises in this quarter, while discounts for most of the capital, because of 12 months ago fell 6.2 percent,” he said.
