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Headline and underlying inflation figures fell to four-year lows in the June quarter, the Australian Bureau of Statistics revealed on Wednesday, lifting hopes of an upcoming Reserve Bank rate cut.
KEY FIGURES
* Headline inflation came in at 0.7 per cent in the June quarter, down from 0.9 per cent in the three months to March
* Annually, the CPI grew by 2.1 per cent, down from 2.1 per cent in the previous quarter
* The trimmed mean, also known as underlying inflation, rose 0.6 per cent over the quarter, down 0.1 per cent
* Annually, the trimmed mean rose 2.7 per cent, down from 2.9 per cent in March
* The trimmed mean was in line with economist expectations but slightly higher than the RBA’s prediction of 2.6 per cent
* Annual services inflation fell to 3.3 per cent, the lowest level since June 2022
WHICH ITEMS WERE DRIVING PRICES HIGHER
* As households rolled off Commonwealth and state energy rebates, electricity prices surged 8.1 per cent, although this was down from the 16.3 per cent rise in the March quarter
* Low supplies of strawberries, blueberries, grapes, tomatoes and cucumbers drove fruit and vegetable prices up 4.3 per cent
* The annual increase in private health insurance premiums pushed up medical and hospital services costs, which rose 2.3 per cent
* Garments rose 3.5 per cent and footwear stepped up 5.7 per cent, driven by new season stock and a bounce back from New Year sales events
WHAT’S PUSHING INFLATION DOWN
* Lower global oil prices caused automotive fuel to fall 3.4 per cent
* Growth in the cost of building new homes slowed to 0.7 per cent annually, while rents eased to one per cent from 1.2 per cent over the quarter
* Insurance costs dropped 0.5 per cent over the quarter – the first fall since March 2019
Jacob Shteyman
(Australian Associated Press)
