During the June quarter, headline inflation increased by 0.7 percent, with an annual rise of 2.1 percent, down from 0.9 percent and 2.4 percent respectively in the previous March quarter. This is the lowest annual inflation rate since the first quarter of 2021.

“Today’s inflation numbers are outstanding,” he told Sky News. “There’s no two ways about it.”

Inflation data key to Reserve Bank’s next interest rate decision

RBA governor Michele Bullock noted that this inflation data is crucial for the board’s upcoming meeting on 12 August, which will assess whether inflation is still on course to sustainably achieve the 2.5 percent target.

“This is why we have decided to wait. We chose to pause and will reassess in August with this new data and updated forecasts. This will enable us to determine if we remain on the path to further easing.”

The Reserve Bank kept interest rates at 3.85 per cent earlier this month. Source: SBS News

The ‘big four’ banks — Commonwealth Bank, Westpac, NAB and ANZ — all agree the next rate cut will come in August, at 0.25 per cent.