Inflation dived last month to its lowest rate in three years as government cost-of-living relief and cheaper petrol helped household budgets – but the Reserve Bank will wait for a more sustained drop before it starts cutting interest rates.
Headline consumer price inflation in August was 2.7%, the slowest increase since August 2021, the Australian Bureau of Statistics said on Wednesday. That compared with the 2.7% rate expected by economists and July’s 3.5% annual pace.
