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Underlying inflation is still too high, keeping another interest rate hike on the table

By Isaac Gross, Lecturer in Economics, Monash University

The latest inflation figures released by the Australian Bureau of Statistics look, at first glance, like good news. The headline rate for May rose 4.0% over the past year, down from 4.2% in April.

After a long run of high inflation numbers and interest rate hikes, mortgage holders could be forgiven for hoping rate relief is on the way.

But don’t hold your breath. Look under the bonnet and the picture is far less comforting. The fall…

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