Inflation in Australia has decreased to 4.1% in the year to the December quarter 2023 – a two-year low.
It has dropped from 5.4% just three months prior and from its peak of 7.8% in December 2022.
This is good news for the economy and consumers, though is somewhat expected given the Reserve Bank of Australia’s (RBA) aggressive policies aimed at curbing inflation.
The release of these figures increases the likelihood interest rates set by the RBA have hit their peak at their current rate of 4.35%. This would be a relief to mortgage holders who have seen their repayments soar. Nevertheless, inflation is still far higher than the RBA’s target range.
For businesses – some key input costs still are rising faster than inflation in the last 12 months and continue posing big challenges such as insurance (up 16.2%), electricity prices (up 6.9%) and automotive fuel (up 5.4%).
