Inflation in Australia continues its downward trend giving the Reserve Bank thought to pause interest rates for a second month in a row.
The consumer price index dropped from the annual rise of seven per cent in March marking the second straight quarter of lower year-on-year inflation.While the annual rise in the cost of goods significantly dropped from 7.6 per cent in March to 5.8, services inflation is at the highest level – 6.3 per cent – since 2001.
“This is the first time since September 2021 that services inflation has been higher than goods, highlighting the change from 12 months ago when goods like new dwellings and automotive fuel were driving inflation,” ABS head of prices statistics Michelle Marquardt said. Economists expected the annual CPI to fall from 7 per cent to only 6.2 per cent, with the release of the latest data giving hope the Reserve Bank of Australia will pause the cash rate for a second month in a row.
Australia’s millions of renters continue to feel the pain of rising costs with rental prices up 2.5 per cent – the strongest quarterly increase since 1988.
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