The RBA’s consumer price measures of inflation are within their target zone and continue to slow down, according to the June quarter Consumer Price Index – which the REIA says should be incentive for another rate cut.
“In the June quarter, the consumer price index rose by 0.4% and annual inflation rate is now 2.4%. These figures are well within the RBA’s target zone of 2-3% and should provide a clear message to the board to further ease its monetary policy,” says REIA president, Peter Bushby.
The analytical series of trimmed mean and weighted median increased by 0.5% and 0.7% respectively for the June quarter 2013, compared to increases of 0.3% and 0.5% respectively in the March 2013 quarter.
“The annual changes for the trimmed mean and for the weighted median were 2.2% and 2.6% respectively and are identical to the changes for the twelve months to the March quarter 2013,” says Bushby.
The housing group increased by 0.6% for the June quarter compared to 1.2% in the March 2013 quarter - the annual rate of increase was 5.3%.
The main increases in the June quarter for the housing group were rents and gas and other household fuels which increased by 1.1% and 1.0% respectively. For the year to June 2013, the largest increases in the housing group were for electricity (17.2%) and gas and other household fuels (15.3%). Rents increased by 3.4% for the year.
“Previously, the RBA indicated that the inflation outlook could provide scope for further easing if it was needed to support demand. With inflation well under control and a subdued economy, it’s appropriate we see a further cut in interest rates when the RBA Board meets in August.”