Chief Economist CPI CreditorWatch Economics Inflation News
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Inflation stubbornly flat in April – not the news businesses were hoping for

A flat CPI (excluding volatile items) result is not the news Australian small businesses were hoping to hear today. The fight against inflation is still far from over, with the last stubborn categories – housing, fuel, electricity, health, education and financial and insurance services – proving difficult to get under pricing control. Record high population growth is likely a contributing factor here, and the hope from here is that moderating incoming overseas migration helps reduce price increases on these essential services.

Despite this flat monthly inflation result, it is still unlikely that the RBA will find cause to increase the cash rate, given that price rises for traceable and discretionary goods have moderated dramatically from their peaks.

What it does mean, however, is that the cash rate will be stuck at this peak level until the RBA gets a good indication that services inflation is falling. Given population growth impacts are still to be worked through, this is unlikely to happen until early 2025.

 

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Anneke Thompson
Chief Economist, CreditorWatch
Anneke joined CreditorWatch as Chief Economist in April 2022. She is a specialist researcher and commentator on issues impacting the credit industry, SMEs and the broader economy, conducting regular presentations to corporate groups. She is also a media spokesperson for CreditorWatch, regularly appearing on national television and in syndicated media. Anneke is also the Managing Director of Clio Research and formerly the National Director and National Head of Research at Colliers International Australia. She has also worked at NAB and Jones Lang LaSalle.
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