Inflation statistics "are remarkable"

Mozo

Thursday 26 July 2012

Treasurer Wayne Swan believes that Australia's latest inflation figures are "remarkable".

It was confirmed yesterday (July 25th) that the annual consumer price index was up by just 1.2 per cent in the 12 months leading up to June 2012.

This was its slowest rate of growth since 1999 and Mr Swan has hailed the statistics as a major achievement.

He said that the news was a reminder that the fundamentals of the country's economy are in very good shape.

"Contained inflation is also a dividend of the government's fiscal discipline and has been vital to the recent interest rate cuts from the Reserve Bank of Australia (RBA)," Mr Swan remarked.

However, many economists believe the RBA will still hold back on further rate reductions when the board meets again at the start of August.

The RBA has slashed interest rates by a total of 125 points since November 2011, although many businesses and housing industry specialists feel that this is still short of what is required.

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