Inflation Eases, But Home Loan Hopes Remain on Hold
Inflation eased slightly in July, but Australian home owners may still be waiting for mortgage relief. The Consumer Price Index (CPI) rose by 3.5 per cent, down from 3.8 per cent in June, according to the latest figures from the Australian Bureau of Statistics.
Housing remained the largest contributor to inflation, followed closely by food and non-alcoholic beverages, and recreation and culture.
Despite the easing inflation figures, a hold on the cash rate is not guaranteed. In recent minutes released by the RBA, board members had considered raising the cash rate by 25 basis points to prevent inflation from becoming entrenched.
The RBA will next meet on September 29, and Governor Michele Bullock has made it clear that another hike remains a possibility if inflation continues above target at 2-3 per cent.