Australia’s second-quarter inflation drops to lowest since March 2021, supporting case for rate cut
Michele Bullock, Governor of Australian Reserve Bank (RBA), speaks at a press conference on Tuesday, April 1, 2025 at a press conference at the bank’s head office in Australia.
Bloomberg | Bloomberg | Getty Images
In the second quarter of Australia, the title inflation rate has fell to its lowest score since March 2021 and decreased by 2.1% to year compared to 2.4% in the previous period.
This was lower than 2.2% expected by the economists who participated in the survey by Reuters, and almost touches the sub-band of the 2-3% target determined by the Australian Reserve Bank.
In a quarter quarter, inflation slowed to 0.7%, 0.8% expected in the Reuters survey and 0.9% in the first quarter.
The Australian Statistics Office revealed that the most important price increases in the quarter are seen in housing, food and non -alcoholic beverages and health, but partially balanced the increase in transportation costs.
On July 24 RBA Governor Michelle Bullock said in a conversation In June quarter, the title inflation expects “2-3% to be in the lower half of our target range”, partially reflected the ongoing impact of the temporary life cost.
“As this effect is loosened, we expect cuff inflation to be at the end of this year and the first part of 2026 to the top of the group.”
RBA has reduced its ratio twice so far this year-one basis points to the highest level of 12 years to combat inflation higher than expected.
Inflation figures supported a ratio deduction, while the RBA changed its policy rate by 3.85% at its previous meeting and challenged expectations from economists.
Minutes from RBA’s July meeting The members of the Board prefer to keep the ratio constant to verify that inflation will enter the target band.
RBA said that some indicators, including monthly inflation and special demand increase indicators for the March quarter, are stronger than envisaged. In addition, the conditions in the labor market as expected to alleviate, he said.
Bank of America’s July 25 note, the second quarter inflation figures at the RBA meeting at the August meeting of the policy ratio to reduce 25 basis points to provide enough evidence, he said.
“The weaker global growth ground increases our conviction in a deduction when it is combined with the unemployment rate rising to 4.3% in June.” He said.
Australia’s GDP has grown less than expected in the first quarter of 2025, and for a year its estimation in the Reuters survey has become less than 1.5%.
In a quarter, the economy expanded by 0.2% and reduced expectations for a growth of 0.4%.
Katherine Keenan, the head of the ABS National Accounts, narrowed soft growth public expenditures and weakened consumer demand and exports.
– These news, please check again for updates.
