Inflation is moving in the right direction, just much slower than expected

Independent analyst Evan Lucas has discussed the latest CPI figures and what it means for future RBA rate decisions. Inflation dropped to 3.5 per cent in the year to July, down from 3.8 per cent in June. “Most of the areas that really do move the dial, things like health, things like education, shelter, energy, they're still probably too high,” Mr Lucas said. “For the first time, though, since 2021, those areas I just mentioned are back inside the lower end of the 4% handle, which is good to see. “So, it's moving in the right direction; it's just so much slower than expected, but all in line with what the RBA said. “That's why the expectation is that inflation will continue to moderate, but not at a rate that we need it to be doing to see any form of movement from the RBA in the next probably four to five months.”