Inflation Australia figures: Good news as CPI drops
- Inflation in July fell to 4.9 per cent
- This could stop September rate rise
Australian home borrowers could be spared further interest rate rises with inflation in July moderating to 4.9 per cent.
The monthly consumer price index measure showed headline inflation falling from an annual pace of 5.4 per cent in June.
Overall inflation is still above the Reserve Bank’s two to three per cent target but the moderation in price pressures could see the cash rate left at an 11-year high of 4.1 per cent, following 12 rate rises since May 2022.
Philip Lowe is next week presiding over his last board meeting as RBA governor before handing over to his deputy Michele Bullock on September 18.
Australian home borrowers could be spared further interest rate rises with inflation in July moderating to 4.9 per cent (pictured is a Sydney Woolworths shopper)
Despite a weaker Australian dollar, petrol prices fell by 7.6 per cent over the year, tracking some movements in crude oil prices.
Fruit and vegetable prices fell by an annual pace of 5.4 per cent.
But housing costs are still increasing, with rents surging by 7.6 per cent over the year following an influx of international students into Sydney and Melbourne, in particular.