As housing policy forms as a key election issue. There was a bit of good news today for households who are feeling the pinch of Australia's official inflation rate, having fell to its lowest level in three years. But experts say it may not translate to quicker rate cuts.
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00:00As cost of living pressures bite, this charity says that it is serving more free meals than
00:08ever before.
00:09Everything is very expensive.
00:10It's not easy.
00:11Electricity is very expensive, the gas is expensive, the water is expensive.
00:18The latest figures for August show that power bills have dramatically fallen in the past
00:23year thanks to government rebates.
00:27Fuel is also going down.
00:29Energy prices are still rising, but not as quickly.
00:33So too are rents, but not as much as they were at the peak of the housing crisis.
00:38All of this is helping bring headline inflation down below 3% for the first time in three
00:44years.
00:46These are heartening numbers, encouraging numbers, they're welcome numbers, but we're
00:50not getting carried away because we know that the monthly numbers can be volatile.
00:55If we didn't have those energy rebates from the state and the federal government, then
00:59headline inflation would have been at 3.1%.
01:03The Reserve Bank has been keeping interest rates high to stop people spending.
01:08Pressure is mounting on the Reserve Bank to start cutting interest rates now that inflation
01:14is at its lowest level since 2021.
01:17However, the Reserve Bank pays attention to core inflation, which strips out temporary
01:23price drops such as those on the energy bills.
01:27And this number is still above its target.
01:30Our view is that the Reserve Bank will be cutting interest rates by February of next
01:34year, but we do recognise the risk that we could get a rate reduction before Christmas.
01:39We're no closer to an interest rate cut than we were yesterday.
01:44The economy is barely growing and, individually, Australians are now going backwards.
01:50We have had a few single parents coming in with their little ones, which is always a
01:56little bit sad to see.
01:57An economy on the edge, as many still wait for relief.