Australia’s June quarter inflation falls to 6%, ABS reports

Inflation Dips in June, But RBA Still Expected to Raise Rates

The Australian Bureau of Statistics (ABS) released its inflation report for the June quarter on Wednesday, showing that inflation fell to 6% from 7% in the March quarter. This is still above the Reserve Bank of Australia's (RBA) target range of 2-3%, but it is the first time inflation has fallen below 7% since December 2021.

The main drivers of inflation in the June quarter were rents, which rose 2.5%, and domestic holiday travel and accommodation, which rose 13.9%. However, there were some offsetting price falls, including for automotive fuel and domestic air travel.

The ABS said that the decline in inflation was due to a number of factors, including the easing of supply chain disruptions and the decline in oil prices. However, the ABS also warned that inflation could pick up again in the coming months, as the RBA continues to raise interest rates.

The RBA is expected to raise interest rates by another 0.5 percentage points at its meeting next week. This would take the cash rate to 1.35%, the highest level since May 2019.

The RBA is raising interest rates in an effort to cool inflation. However, there are concerns that the RBA could raise interest rates too quickly, which could lead to a recession.

The next inflation report will be released in October.

What does this mean for you?

The decline in inflation is good news for consumers, as it means that their purchasing power is increasing. However, the RBA is still expected to raise interest rates in the coming months, which could put upward pressure on mortgage rates.

If you are concerned about the rising cost of living, there are a few things you can do to save money. These include:

• Shop around for the best deals on groceries, utilities, and other household expenses.
• Consider cutting back on unnecessary expenses.
• Increase your income by getting a part-time job or starting a side hustle.

If you are struggling to make ends meet, there are a number of government programs that can help, such as the Low Income Health Care Card and the Rent Assistance Scheme.

You can also contact your local community service organization for more information on financial assistance.