This article has been translated from English to Gen Z Slang.
Ayy, Australia’s inflation hit its lowest in like, forever, during Q2. 📉 This hype got the RBA thinking 'bout rate cuts, fam.
The Consumer Price Index was like, "I’m just gonna chill," rising only 2.1% y'all, on the year in June 2025. This hit different from the previous 2.4% and totally missed the 2.2% mark people were vibing with. On the quarterly, it hit 0.7%, not catchin' that 0.8%. Yep, slower than Q1's 0.9%. 🤷♂️
Key Takeaways
- Headline inflation at 2.1% annually – lowest since March '21, stayin' cozy in the RBA's 2-3% goal zone
- Quarterly inflation of 0.7% – totally under the 0.8% economist guess
- Housing sector leads price gains – up 1.2% this quarter, tops in contributions, sheeesh 🏠
- Food and health costs rise – foods up 1.0%, health a whole 1.5%, like, OMG🥑🩺
- Transport provides offset – dipped 0.7% this quarter, kinda coolin' it down
Housing costs stayed the MVP 💪, putting that 1.2% shine on the quarterly price hikes. With their CPI clout and rate change feels, these are in-da spotlight for policymakers. 👀
Food and health, they're popping off this quarter, but transport took an L, which helped the whole inflation vibe not go cray-cray.
Link to ABS Aussie CPI Report (June 2025 Quarter) 🔗
With inflation puttin’ the feels near the RBA's goal of 2-3%, policy peeps got room to wiggle with rate cuts to keep them good vibes of growth rolling. 📈🌱
RBA boss, Michelle Bullock, was chillin' in late July, saying she expected inflation to slide into the lower swag of 2%-3% for Q2.
Market Reactions
Australian Dollar vs. Major Currencies: 5-min
Overlay of AUD vs. Major Currencies Chart by TradingView 💸
Low-key inflation news sent the Aussie dollar on a rollercoaster 🎢 against big currencies, as peeps brace for a potential RBA rate drop.
But the Aussie had a comeback moment, pulling back losses with CAD (+0.20%) and USD (+0.18) a few hours later. Not so lucky though with JPY (-0.11%) and stayed chill against NZD. 🔄
