Darwin leads nation's inflation
Official figures out this week have shown Australia's annual rate of inflation has slowed to 2.4 per cent, and Darwin’s inflation rate growth remains the highest among the nation's capital cities.
Australian Bureau of Statistics figures show consumer prices jumped just 0.4 per cent in the three months to June, Darwin’s inflation increase was more than double the national average at 0.9 per cent.
The figures fall within the Reserve Bank’s target range of 2 to 3 per cent, though insiders say the RBA would be able to cut the official interest rate below its current historic low of 2.75 per cent, providing the Federal Election does not complicate matters.
It’s getting more expensive to live in Darwin however, with statistics showing over the year to June the Consumer Price Index (CPI) in Darwin increased by almost 4 per cent, the highest of any capital city and well above the national figure.
Brian Redican, chief economist for the Macquarie Group, believes there will be a cut next month: “The Reserve Bank has demonstrated a willingness to move after inflation readings and I think with inflation in the lower half of the RBA's target band, the August board meeting would seem like a good opportune time to do that.”
Mr Redican also says the weakened Australian dollar could have an impact in the next quarter, but it will “only have had a very marginal effect toward the end of June on things like petrol prices,” he said, “so really the main impact is going to come through in the September and December quarters and its probably going to add around half a per cent to annual inflation.”