Its encouraging: Inflation ease shows heats coming off

but let's look at inflation feel inflation has eased this week but economists are warning that it might not be enough to pause the RBA raising the cash rate next week look I'm interested in one thing though so we know that the inflation rate fell from 6.8 to 5.6 percent but the underlying inflation rate if you take out volatile items the opposition saying it's actually a very

slight fall from just 6.5 to 6.4 percent can you explain that to us is the opposition right in their criticism there or should we be celebrating the news that inflation is now 5.6 percent or both things are right Sherry the underlying uh inflation the one without the volatility you know petrol prices and these sort of one-off things that can can have a sort of distortive impact

on inflation but aren't enduring um you know that that that's not included in in the 6.4 figure that's the one The Reserve Bank pays more attention to than the headline number so the headline number the one we saw which is just a monthly figure it's encouraging it's sort of you know it's not it's not meaningless it does show you know the Heat's coming off but you've

got to remember Shari the reserve banks Target bandage to get inflation back between two and three so whether it's 5.6 or 6.4 either way it's still too high now if it's if it's coming down well it is but if it's coming down quickly then that would give it possibly reason not to move on when it meets on Tuesday next week give it a month but I

but the expectation I think pretty universally is that's about the best you can hope from the you know they may wait till the end of July and see what the the quarterly numbers are on inflation they're the ones that come out every three months and they're much more sort of solid and reliable and have have more data in them uh so I suspect I'll do that

but I would be very surprised if there's they don't move again in August at least one more time