Australian underlying inflation remains above target as household costs rise
The article criticises Australian Treasurer Jim Chalmers for previously suggesting inflation had been brought under control, arguing that July’s figures show continued pressure on household budgets. It says the gap between a modest fall in headline inflation and persistently high underlying inflation matters because essential costs, mortgage repayments and rents remain elevated.
It reports annual trimmed-mean inflation at 3.6%, above the Reserve Bank of Australia’s 2–3% target, while headline inflation eased to 3.5% and underlying prices rose 0.5% in July. Over the previous year, housing costs rose 5%, electricity 6.1%, childcare 7.3%, food and non-alcoholic drinks 3.2%, and rents 3.6%; the article also cites a 4.35% cash rate and a 0.7% July fall in national property values. The author attributes some pressure to global oil prices but argues domestic government spending also contributed.
- Underlying inflation remained above the RBA target in July.
- Essential household costs and borrowing expenses continued to rise.
- The article disputes government claims that inflation progress is promising.
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Originally published by Daily Mail as “Jim Chalmers said he’d slain Australia’s inflation dragon. Two years later, it’s breathing fire over household budgets – and ordinary Aussies are paying a brutal price”.