Australia’s cost-of-living pressures eased further in the June quarter, with official figures confirming that inflation now appears to be under control.
The Australian Bureau of Statistics reported headline inflation at 2.1% in annual terms – the lowest rate since 2021 and well inside the 2-3% target set by the Reserve Bank of Australia (RBA). By comparison, inflation was 2.4% in March and 3.8% in June last year. Trimmed-mean inflation, considered a more reliable guide, also fell to 2.7% from 2.9% in March and 4.0% a year earlier.
The RBA, in its August Statement on Monetary Policy, highlighted a mixed picture beneath the headline numbers. Prices for new dwellings and some consumer goods rose, reflecting stronger housing activity and the weaker exchange rate. However, offsetting factors included softer domestic travel prices, easing insurance costs and a decline in market services inflation, which is now close to its long-run average.
With long-term inflation expectations anchored at target, the RBA signalled cautious optimism that inflation is moderating sustainably.
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