Inflation relief
It's too early to pop the champagne but there are finally signs inflation is subsiding in the US and UK. Is there hope too for Australia?
You could practically hear the clinking of glasses in the US this morning. Americans have finally had their first inflation rate decline in four months. This could mean an end to their interest rate rises.
The UK’s local economists also have their bubbly ready to go. Official figures are due on Wednesday morning local time but their forecasts overwhelmingly tip a sharp slowdown.
So should we be breaking out the good champagne in Australia?
Our last inflation read came in higher than hoped, which led the Reserve Bank to shock households by increasing interest rates in November. But this week we’ve had a bit more data that could suggest the RBA has done enough.
Take today’s wage price index from the Australian Bureau of Statistics. Headline writers were quick to share that wages are growing at the fastest quarterly rate on record (1.3% for the September quarter and 4% for the year). The series began in 1997, by the way. But this rise was largely expected.
