Inflation Drops to 3.8%: Mortgage Holders Breathe Easier

The Australian Bureau of Statistics has reported a drop in inflation to 3.8%, down from 4% in May, providing some relief for mortgage holders.

This unexpected decrease could influence the Reserve Bank of Australia's decision on interest rates when they meet on August 11.

LJ Hooker group head of research Mathew Tiller said, 'It does provide the RBA with a little bit of breathing room if they do, in fact, decide to hold.'

However, underlying inflation remains steady at 3.6%, still above the RBA's target range of between 2 and 3%.