Higher Unemployment Rate Could Ease Inflation Pressure

Australia's red-hot labour market is showing signs of cooling down, but this slowdown may not bring relief to mortgage holders. The jobless rate for August was 4.6 per cent, a slight increase from July's 4.5 per cent, according to the Australian Bureau of Statistics.

This is the last piece of economic data the Reserve Bank of Australia (RBA) will receive before its meeting on September 28-29. The RBA has a dual mandate of keeping prices stable and maintaining full employment.

RBA governor Michele Bullock said that a higher unemployment rate between 4.5 and 5 per cent would be enough to 'take the heat out' of inflation, which is currently within the target range of 2-3 per cent.