The latest inflation results show positive steps in the right direction as the Reserve Bank of Australia works to get the inflation rate back to within the 2-3% target range.
According to the Australian Bureau of Statistics, the consumer price index (CPI) rose 3.5% in the 12 months to July, down from the 3.8% increase in June and 4.0% in May.
Of the factors that make up the CPI, housing has remained one of the tightest, but saw a significant decline in the 12 months to July, down to a 4.0% increase from 5.5% in June. Rents increased 6.9%, down from a 7.1% increase in June.
This decline in housing costs was partly due to lower electricity prices driven by the introduction of the Commonwealth and state-specific rebates that kicked in in July.
