The CPI was released yesterday. It was pretty good. most Federal government measures concerning electricity have yet to affect the CPI. They will in august.
CBA economic research says this 'the number of items in the CPI basket with annual inflation below 2% continued to rise and now outnumbers the number of items with prices growing above the RBA’s inflation target band, which continues to fall.'
Also important measures of core inflation continue to ease.
All in all a pretty good result.
I still think the RBA will cut in november. The economy is slowing as is inflation. Inflation does not need to be in the 2-3 % to cut. The RBA simply have to be confident it will get there!
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