Australian Treasurer anticipates inflation slowdown

Australian Treasurer Jim Chalmers anticipates positive progress in tackling inflation in the upcoming data. However, he acknowledges that the central bank may not be prepared to lower interest rates this week.

Economists predict that inflation will decrease to 2.7 per cent in August compared to the previous year.

Chalmers said that whether inflation is in the low threes or high twos, it indicates a significant decrease compared to the levels when they took office a few years ago. This progress is seen as positive and encouraging, showing that they are on the right track.

The Reserve Bank of Australia is expected to maintain the cash rate target at 4.35 per cent on Tuesday, as predicted by all 31 economists surveyed by Bloomberg. Governor Michele Bullock emphasised the need for policy to remain restrictive until CPI consistently approaches the 2-3 per cent target.

Attribution: Bloomberg
Subediting: M. S. Salama