Inflation temporarily plummeted in August as millions of households received $75 electricity bill rebates, but Michele Bullock says rate cuts aren’t on the agenda.
Inflation fell to a three-year low last month as millions of households received $75 electricity bill rebates from the federal government, but prices for other goods and services continued to increase quickly, making interest rate cuts a distant prospect.
Treasurer Jim Chalmers will argue the figures show that Labor is helping to get cost-of-living pressures under control as the government tries to counter voter anger over its handling of inflation.would only be temporary and ruled out a near-term interest rate cut, despite bond markets pricing a three-in-four chance of a cash rate reduction by Christmas.The RBA expects inflation to jump back to 3.
Trimmed mean inflation, the RBA’s preferred measure of underlying inflation, was 3.4 per cent in 12 months to August, a two-and-a-half-year low, but well above the central bank’s 2 to 3 per cent inflation target band. The price of Brent crude, the global benchmark for oil prices, briefly hit a three-year low of $US69 a barrel in early September due to a deterioration in the demand outlook, led by weakening conditions in China.The decline in oil prices has delivered relief at the petrol bowser. The average price for regular unleaded fuel in Sydney fell to 159.4¢ per litre this week, according to the NRMA.
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