Following last week's Consumer Price Index (CPI) data revealing a 4.4% inflation rate for May, CoreLogic's head of research Eliza Owen examined whether this could trigger another RBA cash rate increase and affect the housing market.
The monthly CPI indicator showed inflation increasing in the year to May, with the ‘trimmed mean’, annual inflation measure lifting to 4.4%, up from 4.1% in April. While the monthly CPI indicator isn’t as complete a measure as the quarterly inflation result, there is concern that inflation is back on the rise, which could necessitate another increase in the RBA cash rate target.
Reference RP Data