Critical inflation data puts Australian mortgage holders on notice
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Australia's latest inflation figures have offered some relief, but homeowners are still waiting anxiously to see whether the Reserve Bank will raise interest rates next month.
New data from the Australian Bureau of Statistics shows annual inflation slowed to 3.8% in June, down from 4.0% in May. The trimmed mean inflation rate, the Reserve Bank's preferred measure of underlying inflation, remained at 3.6%.
Although inflation has eased, both measures are still above the RBA's 2–3% target range, leaving the possibility of another interest rate increase on the table.
Economists say the latest figures reduce pressure on the Reserve Bank to lift the cash rate in August, but they have not ruled out future increases if inflation remains persistent.
Treasurer Jim Chalmers welcomed the lower-than-expected result, while stressing that more work is needed to bring inflation under control.
Housing costs continued to be the biggest driver of inflation, rising 6.8% over the past year. Electricity prices also remained high, increasing 22.4% after government energy rebates ended.
The inflation report is the final major economic update before the Reserve Bank's interest rate decision on August 11, making it a key factor in determining whether borrowing costs remain unchanged or rise again.
Stay tuned with Aus News Lanka – the leading platform for news for Australians.
Source : News.com
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