June Inflation Surprise Sparks Hope for Mortgage Relief

The Australian Bureau of Statistics has reported a surprise drop in inflation to 3.8% in June, providing some relief for mortgage holders who may see their payments remain at current rates.

The Reserve Bank of Australia (RBA) will consider this data when making its decision on the cash rate in August.

LJ Hooker group head of research Mathew Tiller said the figures are a 'little bit of breathing room' for the RBA if they decide to hold the cash rate.

However, RBA governor Michele Bullock has cautioned that further easing may be needed to bring inflation back down and hinted at possible future rate hikes.