Inflation rate hits 13-year low
Inflation rates have hit a 13-year low - indicating Australian homeowners may receive more mortgage relief with the Reserve Bank given ample opportunity to cuts interest rates further.
Recent figures have shown an annual rise in the consumer price index of just 1.2 per cent in the year to June - the lowest climb since 1999.
The latest inflation rate may mean good news for homeowners in residential property, with the cost of living pressures potentially meaning an interest rate cut from the RBA next month.
CommSec economist Savanth Sebastian said yesterday's (July 25) inflation rate delivery fell short of the RBA's May forecast, which predicted an annual reading of 1.75 per cent.
"Even if you look at all the underlying measures, it suggests that inflation is well and truly contained," Mr Sebastian told The Australian.
According to figures from the Bureau of Statistics, fruit and vegetable prices have fallen, along with the cost food basics such as bread.
Buyers are now paying 1.9 per cent less for cheese than they were this time last year, along with household appliances falling by 2.7 per cent.
Mr Sebastian said despite evidence pointing to a rate cut, it was unlikely that the RBA would make a cut at its August meeting, instead taking into account domestic data for direction.