Today’s inflation report was good enough to most likely rule out an interest rate rise from the Reserve Bank next Tuesday. While this is welcome news for those with a home loan, the bad news is inflation remains a bit of a sticky problem for most everyday Australians.
Category
📺
TVTranscript
00:00Inflation isn't coming down in a straight line, but it's still enough to prompt a sigh
00:07of relief from home borrowers.
00:10Inflation accelerated over the past 12 months, up from 3.6 per cent at the start of the year.
00:16Rents rose more than 7 per cent and power prices are up 6 per cent.
00:21Both would have been higher had it not been for government subsidies or rebates.
00:25The cost of insurance surged 14 per cent.
00:29Women's clothes rose more than 4 per cent.
00:32And while most food price rises have eased, fruit costs 4.7 per cent more than a year
00:38ago.
00:39We are seeing underlying inflation in our economy moderate.
00:43We would like it to moderate further and faster, but this is the sixth consecutive quarter
00:49that underlying inflation has moderated.
00:52And it's that underlying inflation rate, the RBA watches, because it takes out more
00:57volatile items of the data.
01:00It peaked at, you know, frankly scary levels in late 2022, early 23, so we did need to
01:06see that moderation.
01:08But under ongoing price pressure, consumers are anxious.
01:12Groceries, food, just basic stuff is really getting quite difficult to pay for.
01:17Like a $100 trolley before, it's like $500.
01:21While the latest reading didn't surprise, inflation remains uncomfortably high.
01:28But some of the factors driving it can't be fixed through interest rate hikes.
01:33So the consensus is the RBA stays on hold when it meets next week.
01:38We don't expect the RBA to start cutting the cash rate until February next year.
01:43Rate relief just not on the horizon yet.