The Reserve Bank is under greater pressure to lower interest rates after inflation falls below its target group.
- Core inflation of 1.4% is the lowest
- The RBA recognizes that continuing low inflation is a key condition for reducing interest rates
- In the first quarter, overall inflation, including fresh food and fuel, fell to zero
Basic inflation, RBA's preferred price rising measure, reached 1.4 percent in the year, the lowest since the beginning of the series in 2003.
She is now under the RBA Target Group for 2-3 years for three years.
Total inflation, which includes unstable products such as fresh food and fuel, is flat in the quarter and fell from 1.8% in 2018 to 1.3% at the end of March.
The weaker than expected data sent the Australian dollar to fall by almost 1%.
At 11:45 pm (AEST), the dollar buys 70.39 US cents, as traders' expectations of interest rate cuts in the coming months have increased.
The fall in fuel prices (-8.7%) and travel costs balanced significant increases in vegetable prices (+ 7.7%) caused by the unhappy land merger and floods in the first three months of the year.
Expenditure on secondary education (+ 4.2%) and motor vehicles (+ 2.4%) also affected households' pockets.
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