Updated
Updated · ABC News · Jul 30
Australia Inflation Eases to 3.8% in June as Electricity Jumps and Fuel Falls
Updated
Updated · ABC News · Jul 30

Australia Inflation Eases to 3.8% in June as Electricity Jumps and Fuel Falls

3 articles · Updated · ABC News · Jul 30

Summary

  • June annual inflation slowed to 3.8% from 4.0% in May, easing pressure for an RBA rate hike in August.
  • Electricity posted the sharpest rise after government subsidies were removed, exposing households to higher power costs linked to the Ukraine war.
  • Automotive fuel prices fell after the federal government cut fuel excise as the Iran war drove up oil prices, though that discount is due to expire on August 2.
  • The mix leaves headline inflation cooler but still stubbornly above levels the Reserve Bank of Australia and the government want, with everyday costs such as rent, eggs, holidays and insurance still elevated.

Insights

Could a sudden geopolitical shift erase Australia's recent inflation victory and force a surprise rate hike?
Are temporary fuel rebates creating a false sense of security for Australian mortgage holders facing sticky domestic prices?