Good news for Aussies with as inflation falls - here's what it could mean for your mortgage
Aussie home borrowers could get more relief next month with inflation falling to the lowest level in more than six months.
The consumer price index for May fell to just 2.1 per cent - putting on the lower side of the Reserve Bank's two to three per cent target.
It's also the lower monthly indicator of headline inflation since October 2024.
KPMG chief economist Brendan Rynne said a moderation in inflationary pressures could see the Reserve Bank cut interest rates again in July, with economic growth still slow.
'This could provide comfort to the Reserve Bank at its next meeting, knowing that any cut to the cash rate will occur in a stable inflationary environment,' he said.
In good news for those planning a winter break, holiday travel and accommodation costs increased by just 0.6 per cent over the year.
Bread and cereal prices rose by just two per cent but fruit and vegetable prices were up 2.8 per cent, as the effects of ex-tropical cyclone Alfred continued to wane.
Fuel price fell by 10 per cent over the year, but the Australian Bureau of Statistics data was compiled before Israel and the United States launched airstrikes on Iran.
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