In a recent article published by the Associated Press, inflation in Australia has slowed down to its lowest rate in three years according to the country's official statistics agency.
A credit card is placed into a credit card machine for processing payments on September 11, 2023 in La Puente, California. Credit card debt from US consumers is rising by billions of dollars amid higher inflation and interest rates, topping $1 trillion for the first time in history, according to the Federal Reserve Bank of New York.
The Australian Bureau of Statistics has also reported that the Consumer Price Index (CPI) has also fallen from 5.4% which was in September to the current 4.1%.
This result shows that the annual inflation rate is now at its lowest level since December 2021. In addition, quarterly inflation was down to 0.6% from 1.2% back in September. These are all good numbers as they beat the market expectations for a 4.3% annual increase and a 0.8% quarterly rise. Head of price statistics, Michelle Marquardt, provided the following statement "While prices continued to rise for most goods and services, annual consumer price index inflation has fallen from a peak of 7.8% in December 2022, to 4.1% in December 2023."
In addition, while the CPI remains above the Reserve Bank of Australia's targeted band of 2 to 3%, this new slowdown will give mortgage holders some hope that relief on their interest rates in in sight. The RBA is to meet on Tuesday to review the official cash rate which at the time of writing stands at 4.35%.
Overall results
Australian Treasure Jim Chalmers has said the numbers are "Very encouraging". However, he also stated "But it's not mission accomplished yet, because we know people are still under the pump." However, these new reports match the IMF's prediction of higher global economic growth, and in the United States, the Federal Reserve has reported that inflation is also reaching their targeted rate. But following Chalmers's point there have also been statements that the global economy isn't out of the woods yet as tensions continue to rise within Gaza and Israel many cargo ships have been forced to re-route their journeys to avoid strikes from Iranian-backed Houthi Rebels who have been conducting strikes against these cargo ships in solidarity with Gaza. But again, these numbers prove that relief is within sight following the IMF's chief economist Pierre-Olivier Gourin who stated "The global economy continues to display remarkable resilience, with inflation declining steadily and growth holding up. The chance of a 'soft landing' has increased."
