The consumer price index (CPI) increased by 3.8% in the June 2024 quarter, up from a 3.6% increase in the March 2024 quarter, according to the Australian Bureau of Statistics.
This will impact the Reserve Bank of Australia’s (RBA) decision about the next move for interest rates.
The RBA began increasing the official cash rate 18 months ago in an attempt to bring inflation back to within its target range of 2-3%. Higher interest rates typically mean lower demand in the economy which puts downward pressure on prices.
But, with these latest CPI results, the RBA may be concerned inflation is not easing as they had hoped.
The RBA board is meeting on 5 and 6 August, so we will hear in the next day or so what their next move will be.
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