Australian home borrowers could be facing rate cuts soon as inflation falls.
Headline inflation, also known as the consumer price index, fell to 2.8 per cent in the year to September, marking a sharp drop from 3.8 per cent in the June quarter.
The quarterly figure is good news because inflation is now within the Reserve Bank’s 2 to 3 per cent target.
This makes an interest rate cut in 2024 a viable option, despite RBA Governor Michele Bullock repeatedly ruling out any relief before Christmas.
General inflation fell as a result of lower prices for electricity and oil.
Core or trimmed average inflation, excluding volatile price movements for an average, was higher at 3.5 per cent, but was a big drop from 4 per cent in the June quarter.
The federal government’s $300 electricity rebates caused the price of energy to fall at an annual rate of 24.1 percent in September.
Former Queensland Labor Premier Steven Miles lost Saturday’s election after introducing a one-off $1,000 electricity rebate.
Australian home borrowers could be in line for rate cuts as inflation falls
Monthly inflation figures, also released on Wednesday, showed rents rising at an annual rate of 6.6 percent.
Less comprehensive monthly data from the Australian Bureau of Statistics showed headline inflation rose just 2.1 per cent over the year, putting it on the low side of the RBA’s target of 2 to 3 per cent.
Its underlying CPI measure – excluding fruits and vegetables, gasoline and holiday travel – showed prices rose just 2.7 percent.
Headline inflation, also known as the consumer price index, fell to 2.8 per cent in the year to September, a sharp drop from 3.8 per cent in the June quarter.