Slowly but surely, inflation moves in the right direction
It’s proven stubbornly sticky to shift but latest figures show inflation is on its way down
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It’s a happy new year for mortgage holders following the release of data on the Consumer Price Index today. The CPI rose to 4.3 percent in the 12 months to November last year, down from 4.9 percent in October, taking pressure off the RBA for another rate rise.
“This month’s annual increase of 4.3 per cent is down from the 4.9 per cent rise in October and is the smallest annual increase since January 2022,” said Michelle Marquardt, ABS head of prices statistics.
The results make a further rise in the cash rate unlikely when the RBA Board meets in February, the first meeting of the year. December inflation is expected to follow a similar pathway, further reducing the chances of another interest rate hike.
Once again, housing, insurance and food and beverages placed the strongest pressure on prices, although there are signs that services inflation, which has remained stubbornly high, is finally starting to dip, down from 5 percent in October to 4.7 percent.
It’s welcome news for mortgage holders who shouldered significant rate rises over the past 18 months as the official interest rate rose to 4.35 percent. Some experts are so optimistic about the news that they have predicted the possibility of cuts as early as May. However, the country’s largest mortgage lender, the Commonwealth Bank, anticipates September 2024 as the most likely time for the first fall in rates.
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China is Australia’s largest trading partner, but Australia’s growing security ties with the U.S. has added complexity to its relationship with Beijing
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SYDNEY—China will lift a ban on Australian rock lobster imports by the end of the year, Australia’s prime minister said Thursday, as ties between the two major trading partners continue to stabilise.
The announcement, following months of speculation, comes after China previously lifted trade barriers on various other Australian goods including barley, wine and beef. Beijing imposed the restrictions in the aftermath of the Covid-19 pandemic, during a diplomatic spat with Australia’s previous government.
Many of Australia’s live lobsters were sent to China prior to the ban, which sent prices spiralling downward.
“With our patient, calibrated and deliberate approach, we’ve restored Australian trade with our largest export market,” Australian Prime Minster Anthony Albanese said Thursday after meeting with Chinese Premier Li Qiang alongside an Asean summit in Laos. “We’ve worked for the removal of trade impediments one by one.”
Albanese said the lifting of the ban would support Australian jobs, and noted the ban will be lifted in time for Lunar New Year in early 2025.
China is Australia’s largest trading partner, but Australia’s growing security ties with the U.S. has added complexity to its relationship with Beijing. Ahead of the meeting with Li, Albanese said his message would be that “we’ll cooperate where we can, we’ll disagree where we must.”
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