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The Conversation

John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra

At 2.7%, Australian inflation is back within the RBA zone. Here’s why that matters

Inflation RBA United States Australia Reserve Bank Michele Bullock Electricity the Bureau of Statistics

Jeremy Ng/Shutterstock

A closely watched measure of Australian inflation dived in the month of August, plunging from 3.5% in July to just 2.7%.

The dip below 3% puts the monthly measure of annual inflation back within the Reserve Bank’s target band of 2-3% for the first time since August 2021.

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