Business News

Australia’s 3.8% inflation rate is concerning, but not enough to trigger a rate rise

Written by John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra

After falling for five consecutive quarters to less than half of its 7.8% peak, inflation climbed slightly in the June quarter, from 3.6% to 3.8% for the year to June.

A rate of 3.8% is what the Reserve Bank had forecast. It is in line with market expectations, and well down on the 6% recorded this time last year.

It is...

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