Inflation in Australia continued to decline in the June quarter from its peak at the end of last year, but it remains too high. Headline and trimmed mean inflation were around 6 per cent in yearended terms. Goods price inflation eased further in the quarter, and by more than had been expected, especially for consumer durables. An easing in global cost pressures and a slowing in domestic demand growth are flowing through to domestic goods price inflation. By contrast, services price inflation – especially for market services and rents – remained strong. The outlook for inflation is little changed from three months ... (full story)

Some further tightening may be required. • Board considered raising rates at aug meeting, decided stronger case was to hold steady. • Risks around inflation are broadly balanced, but much depends on inflation expectations. Inflation is moving in the right direction, consistent with reaching target by late 2025. • Policy has been tightened significantly, full impact has yet to be felt. • Board mindful of lags in policy, painful financial squeeze on some households. • Board keen to preserve gains made in labour market • Tightening could provide some further insurance against upside inflation risks. • Trims GDP growth ... (full story)