Inflation has dived to 2.7 per cent, the lowest rate in three years, as subsidies for electricity and petrol relieve the cost of living in Australia.
The Reserve Banks’ ideal range for inflation is between two to three per cent.
Government subsidies saw electricity prices drop by a record 17.9 per cent, while petrol was 7.6 per cent cheaper.
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Shadow Treasurer Angus Taylor said CPI needs to stay consistently low before interest rates are changed.
Australia’s central bank stated interest rate cuts were unlikely any time soon.
The bank’s board released in a statement: “While headline inflation will decline for a time, underlying inflation is more indicative of inflation momentum, and it remains too high.”
Reserve Bank Governor Michele Bullock says progress surrounding underlying inflation has slowed.
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