The May headline inflation rate of 5.6% has sparked speculation about the Reserve Bank's next move. With this decrease, investors are now anticipating that the bank may choose to pause rather than increase its official rate. The underlying inflation rate of 6.4%, which excludes volatile price changes, remained relatively unchanged from April’s rate of 6.5%. Automotive fuel, on the other hand, decreased by 8%, considering the fuel excise rate reduction implemented a year earlier. In summary, the May inflation rate has triggered speculation about the Reserve Bank’s next move.

Source: The Guardian June 28, 2023 03:47 UTC