Updated

Inflation eases but not enough for the RBA

Phillip Coorey and Michael Read

Updated Jun 28, 2023 – 4.37pm, first published at 11.49am

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Treasurer Jim Chalmers is open to another round of cost-of-living relief, but believes for now it is important to maintain a healthy budget surplus to keep pressure off inflation.

The prospect of the cash rate staying unchanged at 4.1 per cent next week was bolstered on Wednesday when monthly data showed headline inflation fell to 5.6 per cent for the year to May.

Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.