Rental pain takes gloss off slowing CPI
Stubbornly high residential rents are expected to have an outsized influence on Wednesday’s quarterly inflation figures and feed into the Reserve Bank’s August cash rate decision as it approaches the top of its monetary tightening cycle, economists say.
Headline annual inflation is expected to slow to 6.2 per cent in the June quarter, from 7 per cent in March, according to a Reuters survey of economists. Trimmed mean inflation, the RBA’s preferred measure, is expected to ease to 6 per cent from 6.6 per cent.
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