Australian Inflation falls to 6 per cent

Inflation fell to 6 per cent in the year to June, the second consecutive quarter of lower annual inflation.

In the three months to June inflation rose by 0.8 per cent, according to the Australian Bureau of Statistics (ABS), the slowest rate of growth since September 2021.

ABS head of prices statistics Michelle Marquardt said the quarterly lift in inflation was driven by rents, international travel and accommodation, financial services and new dwelling purchases.

“Rents recorded the strongest quarterly rise since 1988, reflecting low vacancy rates amid a tight rental market. Rental price growth for flats continued to outpace the growth for houses,” she said.

“Higher demand for international travel, particularly to Europe with the start of the European summer peak season, led to price increases. These were partially offset by price falls for travel to South-East Asia and New Zealand as prices dipped following increases during the Christmas and school holiday periods in December and January.”

The annual inflation rate was at 7 per cent in the March quarter.