SYDNEY (Reuters) By Dr Majid Khan– Prime Minister Anthony Albanese said on Saturday he was pleased with Australia’s low inflation but warned that pressure on the cost of living across the country remained.
Data this week showed Australian inflation slowed to its lowest level in eight months in February. This is partly due to falling prices for holiday travel and accommodation, and signals the Reserve Bank of Australia (RBA) should pause its cycle of rate hikes. It will meet on Tuesday.
“The results are promising and this week’s numbers are heading in the right direction, but we know there is pressure on the cost of living,” Albanese told reporters in Melbourne.
Inflation remains a “real problem” and a “global phenomenon”, he said, campaigning alongside the Labor candidate in Aston, Victoria, where the by-election was held.
The monthly consumer price index (CPI) rose 6.8% in his year to February, the lowest rise since June, according to the latest Australian Bureau of Statistics data released on Wednesday. . This compares with the previous month’s 7.4% and his 7.1% in market forecasts.
Investors said the data prompted him to cut the chances of the RBA raising 25 basis points at the next policy meeting to just 5%, down from 15% previously. RBA Governor Philip Lowe earlier said the central bank was close to pausing rate hikes as monetary policy is now in the hawkish zone, which could come as early as April.
