What does the latest inflation measure mean for interest rates?

Inflation has now dropped to its lowest level in nearly 18 months, which was a result that surprised many forecasters as well as the Reserve Bank, too, it seems. According to the Consumer Price Index for the June quarter, headline inflation fell to six per cent in June from seven per cent in March, which was weaker than market expectations of 6.2 per cent and lower than the RBA’s official forecasts. Headline inflation has now fallen nearly two percentage points from 7.8 per cent in the December quarter to six per cent in the June quarter – or in just six […]

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