A drop in inflation to 2.7 per cent shows a continued moderation but has come in just too late after the Reserve Bank kept interest rates on hold.
A drop in inflation has been welcomed as a small respite for struggling shoppers but households are being warned prices are set to bounce around and not come down in a straight line. Inflation cooled to 2.7 per cent in the 12 months to August, down from 3.5 per cent in July, taking it to its lowest point in nearly three years, largely off the back of electricity subsidies.
"This is a good result that shows we're getting inflation under control but we're not getting ahead of ourselves because we know it doesn't moderate in a straight line," he said. Federal and state electricity helped bring power bills down 17.9 per cent, the largest annual fall on record. Electricity bills would have jumped 16.6 per cent since June 2023 without the rebates, according to the Australian Bureau of Statistics.
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