Key inflation figure on the Reserve Bank's mind

Key inflation figure on the Reserve Bank's mind

Headline inflation is expected to fall on an annual basis despite higher fuel prices and a rise in market services driven by an increase in award wages.

Key inflation figure on the Reserve Bank’s mind

A bumper wage rise for low-paid workers could put pressure on a category of inflation data closely watched by the Reserve Bank. From July 1, workers on award wages received a 4.75 per cent boost to their pay packets, which could result in a rise in market services inflation. Market services are an important component of the consumer price index because they tend to be stickier than other items such as fuel and holiday travel, and give the RBA a …