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Power rebates hide inflation threat, with no rate cuts in sight

Michael Read

Economists and business leaders say state and federal governments have not done enough to help the Reserve Bank get inflation under control, warning households will only get genuine cost of living relief when interest rates come down.

Headline inflation fell to 3.5 per cent in July as government energy rebates caused temporarily smaller electricity bills, but analysts said the figures would not be enough for the RBA to bring forward interest rate cuts amid broader strength in underlying price pressures.

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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. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/power-rebates-hide-inflation-threat-with-no-rate-cuts-in-sight-20240828-p5k5y2