The markets breathed a sigh of relief on inflation data. Economists are still on alert.
The latest CPI data has been welcomed by both the government and the markets. But the inflation fight isn't over.
Jim Chalmers was clearly relieved to see the June quarter's 3.8% annual inflation result ahead of facing the media on Wednesday afternoon. The Treasurer could comfortably say the rate is heading in the right direction, rather than having to face questions about how the public would manage another rate rise on his watch.
“Underlying inflation is going down in annual terms and in quarterly terms and this is the sixth consecutive quarter that we’ve seen underlying inflation in our economy moderate,” Chalmers said at a press conference immediately following the new data.
“[We] can see in the substantial progress we have made in the last couple of years, that [our] policies are the right ones when it comes to see the moderation in inflation".
The relief was also felt in the markets, as the ASX200 jumped and the Aussie dollar fell below US65c.
