Headline inflation rose 0.7 per cent in the June quarter and 2.1 per cent annually, down from 0.9 and 2.4 per cent respectively in the March quarter. It’s the lowest annual inflation rate since the March 2021 quarter.

“Today’s inflation numbers are outstanding,” he told Sky News. “There’s no two ways about it.”

Inflation data key to Reserve Bank’s next interest rate decision

At the time, RBA governor Michele Bullock said the inflation data would be a key factor ahead of the board’s next meeting on 12 August, to determine whether or not inflation was still on track to sustainably reach 2.5 per cent.

“That’s the reason we’re waiting. We decided to hold and we’ll reconsider again in August with this extra information and new forecasts. And that will allow us to decide whether or not we’re still on track for continuing to ease.”

The Reserve Bank kept interest rates at 3.85 per cent earlier this month. Source: SBS News

The ‘big four’ banks — Commonwealth Bank, Westpac, NAB and ANZ — all agree the next rate cut will come in August, at 0.25 per cent.