![]() Prior to Wednesday’s inflation numbers, the ASX’s rates tracker indicated there was a slightly less than 50-50 chance the RBA would raise its interest rate 25 basis points when its board gathers on 1 August. Employers, though, were still adding jobs at a strong clip in June, leaving the jobless rate hovering near half-century lows. The economy is sending mixed signals, with consumer and business confidence low or falling. ![]() The RBA wants inflation to continue to moderate towards is 2-3% annual rate by mid-2025 and has said it will keep increasing its cash rate until it is confident that trajectory will be maintained. “In that context, there should be no further interest rate increases in Australia.” “The Australian economy is softening dramatically, the pace of inflation has peaked and is moderating quickly, wage growth is not excessive and medium-term inflation expectations are not rising,” Smith said. The trimmed mean, or underlying inflation rate that strips out more volatile price movements, came in at an annual pace of 5.9% and 0.9% for the quarter, the ABS said.ĭeloitte Access economics partner Stephen Smith said the latest inflation numbers were “further evidence that the Reserve Bank has increased interest rates too far”. “While prices continued to rise for most goods and services, there were some offsetting price falls this quarter including for domestic holiday travel and accommodation and automotive fuel,” Michelle Marquardt, ABS head of prices statistics, said. ![]() The quarterly increase was the lowest since the September quarter of 2021. Prices rose 0.8% for the June quarter alone, easing from 1.4% in the previous three months. ![]()
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