Inflation rises at slowest pace in 13 years

Rates of inflation have risen at their slowest pace in more than a decade, new figures released by the Australian Bureau of Statistics have confirmed.

The consumer price index only increased by 1.2 per cent in the year leading up to June 2012, which was the lowest recorded hike since 1999.

This will come as good news to struggling Aussie households, as many people have been forced to cut their spending in order to keep their bank accounts in the black.

Prices grew in the second quarter of 2012, but only by 0.5 per cent, which was broadly in line with what many economists had been predicting.

Although the revelation gives the Reserve Bank of Australia (RBA) more room to slash interest rates, experts have warned that this is unlikely to happen.

The RBA revealed in its last board meeting that it will now take a back seat after lowering the national cash rate by 75 points in May and June.

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