Cost-of-living news every Aussie has been waiting for as Reserve Bank makes huge call on inflation: What you need to know
Andrew Hauser, the RBA's deputy governor, said the underlying inflation rate of 2.7 per cent for the June quarter was a number closer to the mid-point of the Reserve Bank's two to three per cent target.
'The data yesterday were very welcome, I could stop there,' he said.
'We were looking for more evidence that inflation was moving sustainably back to the mid-point and we've had another piece of that jigsaw yesterday.'
The Reserve Bank on July 8 surprised financial markets by leaving the cash rate on hold at 3.85 per cent.
At the time, Governor Michele Bullock said the March quarter's underlying inflation rate of 2.9 per cent was still too high, despite being within the RBA band.
But new Australian Bureau of Statistics inflation data, released on Wednesday, showed underlying inflation falling to the lowest level since December 2021, during the aftermath of Covid lockdowns.
This trimmed mean measure is the RBA's preferred yardstick.
Headline or consumer price index inflation fell again to just 2.1 per cent, the lowest since March 2021.
Both numbers have firmed up the prospect of a rate cut on August 12, that would see the cash rate fall back to 3.6 per cent for the first time since May 2023.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
5 minutes ago
- The Sun
Price of British pint will reach staggering figure by 2030 due to soaring inflation, study claims
A PINT of lager could hit £13 in under five years, a study claims. Inflation and soaring outgoings for pubs will see it double by 2030. The report puts the current average pint of a standard brand at £5.17 — and £6.10 in London. It predicts it could reach £8 nationwide by 2030 — and £11 in cities. But it warns: 'Touristy zones and stadiums could even see £12 to £13 pints becoming the norm.' The study by online review site PlayCasino forecasts Peroni rising from an average £6.83 to £11.33 and San Miguel from £6.36 to £10.55. Carlsberg will jump from £4.23 to £7.02, Stella Artois from £5.27 to £8.74 and Heineken from £6.00 to £9.95 The report says the rise in the national living wage has hit landlords. It highlighted increases to spiralling energy bills, alcohol duty hikes, and the rocketing costs of ingredients, packaging and transport. It adds: 'With the end of pandemic support many pubs are still catching up financially.' One landlord who responded to researchers, commented: "Our energy bills have tripled, stock costs are up and we're still recovering from the pandemic. "Prices are rising because they have to - or we don't survive." The priciest and cheapest places in UK to buy a beer 1
Reuters
2 hours ago
- Reuters
Mexico's headline inflation seen easing in July, core inflation still above target
MEXICO CITY, Aug 4 (Reuters) - Mexico's headline inflation likely slowed in July, although the core index likely remained above the official target, supporting expectations the central bank will slow its pace of interest rate cuts later this week, Reuters poll showed on Monday. The median estimate from 13 analysts forecast headline inflation of 3.53% in the 12 months through July, which if confirmed would be its lowest reading since December 2020. (MXCPIA=ECI), opens new tab For core inflation, considered a better parameter for measuring price trends because it eliminates highly volatile products, estimates indicate that it stood at 4.23%, slightly below June's 4.24% (MXCCPI=ECI), opens new tab but still above the Bank of Mexico's target of 3%, plus or minus a percentage point. The central bank last month lowered its benchmark rate by half a percentage point, although the decision by the five-member board of governors was not unanimous, after Deputy Governor Jonathan Heath voted to leave it unchanged. According to the minutes from July's meeting, all four officials who backed the cut — the fourth consecutive cut of that magnitude — said the board may adopt a more gradual approach in future decisions, as inflation shows signs of slowing and economic activity proceeds at a sluggish pace. Compared to the previous month, consumer prices are forecast to have risen by 0.28% (MXINFL=ECI), opens new tab in July, while for the core index an increase of 0.30% is expected (MXCPIX=ECI), opens new tab, according to the survey. The official data will be released on Thursday, a few hours before the central bank's rate decision. Another Reuters poll published on Friday showed that the market is widely discounting that the bank will announce a decrease of only 25 basis points in the cost of credit. The central bank has cut its benchmark rate by 325 bps since early 2024 as part of a monetary easing cycle that began after the rate reached a record high of 11.25%.
Finextra
2 hours ago
- Finextra
Banking Circle completes acquisition of Australian Settlements Limited
Banking Circle ASL acquisition marks a transformative step in Australia's payments ecosystem. 0 The combination of Banking Circle's cross-border infrastructure with ASL's domestic ADI capabilities delivers real-time payment innovation and financial accessibility. A significant milestone in the evolution of payments in Australia, this strategic acquisition unites ASL's established ADI licence and deep domestic banking, payments and settlement experience with Banking Circle's world-class cross-border payments and infrastructure capabilities. The newly integrated entity forms a powerful, end-to-end payments platform serving the needs of Australian and global financial institutions, cementing Banking Circle's commitment to advancing the Australian financial ecosystem through the development and delivery of faster, more efficient, and more accessible real-time payment solutions. 'Bringing ASL into our global platform establishes an expanded presence for Banking Circle in Australia, one of our most strategically important markets,' said Laust Bertelsen, CEO of Banking Circle. 'ASL has been a trusted partner to local financial institutions for decades. Together, we will empower banks, fintechs, and payment providers in Australia to offer faster, cheaper, and more secure payment solutions - at home and abroad.' Key Benefits of the Acquisition: Enhanced Real-Time Payments Capability: The acquisition of ASL will enable Australian domestic and global financial institutions to access all domestic payment schemes including NPP, BECS, PayID, PayTo, and BPAY, while unlocking cross-border capabilities for the Australian financial institutions through Banking Circle's multi-currency accounts, FX services, and global clearing network. Next-Generation Payments Infrastructure: The acquisition of ASL will deliver scalable, resilient, and future-ready payments infrastructure tailored for financial institutions in Australia. Expanded Regulatory and Compliance Coverage: ASL's deep understanding of the Australian regulatory landscape ensures robust compliance, while Banking Circle's global experience introduces best-in-class risk and fraud management practices. Empowering Financial Innovation: With local presence and global connectivity, Banking Circle will support the growth of Australia's fintech and banking sectors by offering more agile, transparent, and cost-effective settlement services. 'We're seeing strong demand from both Australian financial institutions looking to partner with a specialist payments bank to process their domestic and global payments; as well as Australian companies looking to scale globally for a payments bank overseas,' said Mishal Ruparel, CCO of Banking Circle. 'This strategic combination means our clients will gain access to all domestic Australian payment schemes as well as the global currencies Banking Circle offers.' Mark Tibbles, CEO of ASL, added 'We are thrilled to join Banking Circle and scale our operations to deliver a leading proposition to Australian banks, payment providers, fintechs and corporates looking for full domestic capability with true global reach. Together, we bring end to end knowledge and expertise to support all aspects of our clients' payment needs. ASL has a deep history of supporting Australia's mutual banks, credit unions and emerging digital banks and we're excited to grow further in these segments.' Banking Circle established its Australian presence in 2023, operating through BC Payments Australia, which holds an Australian Financial Services License. Following its launch in Australia, BC Payments quickly realised the demand for its payment solutions and formed an alliance with ASL to provide access to local payment services. The teams are now working closely to integrate all capabilities, creating a unified and streamlined service point in Australia for all clients. 'With Australian banks and fintechs navigating a rapidly evolving payments landscape, the demand for resilient and scalable infrastructure continues to grow,' said Piers Cracknell, General Manager of BC Payments Australia. 'Banking Circle's capabilities combined with ASL enables us to offer an unparalleled payments proposition with direct access to the Australian Dollar and all domestic clearing and settlement schemes, through one API. It is compelling for banks, fintechs and payment businesses, enabling clients to focus on growing their core businesses.' Through the Banking Circle ASL acquisition, the unified platform accelerates financial innovation and real-time settlement for Australian and global institutions.
