Inflation rate falls to 2.1% in May, boosting chances of July rate cut
Jonathan Barrett
Australia’s inflation rate has eased again, bolstering expectations the Reserve Bank will lower borrowing rates next month.
The headline inflation rate was 2.1% in the 12 months to May, down sharply on the previous month’s figure of 2.4%, according to consumer price index figures released today.
The Reserve Bank’s preferred measure for inflation, the “trimmed mean” or underlying inflation rate that strips out volatile items and various government subsidies, decreased from 2.8% to 2.4%.
Key events
Josh Butler
Chalmers had ‘very productive’ chat with US treasury secretary, spoke about tariffs
Chalmers said he had a “very productive conversation” with his American counterpart Scott Bessent this morning, with a phone call touching on trade and tariffs issues, as well as critical minerals and tax. Chalmers, in a press conference in Brisbane, said he’d spoken to Bessent, the United States secretary of the treasury, bringing up Donald Trump’s tariffs on Australian goods:
This was a very positive discussion. We were able to cover a whole range of issues, the critical minerals market around the world, some of the challenging tax issues, including some issues before the US Congress, and also, of course, I made our case once again when it comes to trade and tariffs and these escalating trade tensions around the world.
I’m very grateful for the time that we were able to spend together on the phone today talking about critical minerals, international tax and also trade and tariffs at the same time.
Chalmers said it was his third conversation with Bessent, noting Australian investors were worried about volatility in the US, including in regards to superannuation funds and American legislative change – and forecast some “good developments” on these issues in coming days. Chalmers said:
I’ve engaged a lot with Australian investors over the course of the last couple of weeks on their concerns. I was able to represent them and raise their concerns directly with Treasury Secretary Bessent, and I know that the Treasury Secretary is very focused on these issues as well.
We hope that they can be resolved. We do not want to see our investors and our funds unfairly treated or disadvantaged when it comes to developments out of the US Congress and again, I’m very grateful to Scott Besant for hearing me out and for also undertaking to make what progress he can to try and resolve these issues.
Chalmers welcomes inflation figures, saying ‘we’ve made a hell of a lot of progress’
Jim Chalmers just held a press conference after the release of inflation figures, showing the rate falling to 2.1% in May. The treasurer said the numbers were good news for Australia and the country had made a “hell of a lot of progress”:
I’m reluctant to say it’s mission accomplished but we are certainly making more progress than what we expected.
He pointed to a raft of cost-of-living measures set to go into effect from Tuesday, including an increased minimum wage and new incentives for apprentice builders, noting the superannuation guarantee will also increase that day to 12%. Chalmers said:
There are a range of cost-of-living measures that … recognise that people are still under pressure and the government is doing what it can to help people doing it tough.
Miles Franklin shortlist announced
Five writers of colour have been shortlisted for Australia’s most prestigious literary prize, AAP reports.
Hong Kong-born Brian Castro, Sri-Lankan-born Michelle de Kretser, Tongan-Australian Winnie Dunn, Burruberongal woman Julie Janson, Malaysian-born Siang Lu and Fiona McFarlane comprise the shortlist for the 2025 Miles Franklin Literary Award, released on Wednesday.
The winner of the $60,000 prize will be announced on 25 July by award trustee Perpetual and the Copyright Agency’s Cultural Fund. Judges said the shortlist “celebrates writing that refuses to compromise”, saying:
Each of these works vitalises the form of the novel and invents new languages for the Australian experience.
Read more from one shortlisted author, Winnie Dunn, here:
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Antoinette Lattouf wins wrongful termination case against the ABC – video
Bruce Lehrmann files application to halt Toowoomba rape trial
Former Liberal staffer Bruce Lehrmann’s bid to halt his rape trial, which includes claims of police misconduct, will be tested at a court hearing.
Defence lawyer Zali Burrows filed an application in Toowoomba district court seeking a permanent stay in Lehrmann’s pending trial, claiming that police illegally obtained his lawyers’ phone calls, reports AAP.
Burrows on Monday also sought for prosecutors to disclose all potential evidence in the case.
Lehrmann, 30, is accused of raping a woman twice during the morning of 10 October 2021 after they met at a strip club the previous night in Toowoomba, west of Brisbane.
Lehrmann, who is on bail, and Burrows appeared by phone when the application to halt the trial was briefly mentioned this morning in Ipswich District Court.
Judge Dennis Lynch asked Burrows and crown prosecutor Caroline Marco if they would agree to hold a hearing on the application on 25 July. They both agreed.
The pre-trial case was already scheduled for a hearing on evidence disclosure in Toowoomba district court on that date.
Many New Sales Wales residents awoke to high winds this morning – with some gusts reaching up to 117km/h.
The Bureau of Meteorology has released a damaging winds warning for parts of the state including the Great Dividing Range, southern Sydney and Newcastle.
The bureau recorded especially high gusts on the state’s south coast, with a 117km/h gust in Bellambi at 9.03am and a 98km/h gust in Wollongong minutes later.
Jonathan Barrett
Before the new CPI figures were released, the rates market was pricing in an 80% chance of a quarter percentage point cut by the RBA at its next meeting in July to 3.6%.
In total, traders expect three more rate cuts this year.
The monthly result can be volatile and is viewed as less authoritative than quarterly figures, due out next month.
Nonetheless, the significant drop in headline inflation will support calls for more interest rate relief when the RBA meets early next month.
Inflation rate falls to 2.1% in May, boosting chances of July rate cut
Jonathan Barrett
Australia’s inflation rate has eased again, bolstering expectations the Reserve Bank will lower borrowing rates next month.
The headline inflation rate was 2.1% in the 12 months to May, down sharply on the previous month’s figure of 2.4%, according to consumer price index figures released today.
The Reserve Bank’s preferred measure for inflation, the “trimmed mean” or underlying inflation rate that strips out volatile items and various government subsidies, decreased from 2.8% to 2.4%.
Albanese says Trump’s views on Israel-Iran conflict – F-word included – were ‘pretty clear’
The prime minister just spoke from Tasmania, where he was asked about US president Donald Trump’s apparent impatience with Israel and Iran in the early hours of the announced ceasefire. Albanese said his US counterpart had made himself clear, and Australia agreed “we want to see peace in the region”.
The PM said:
Well, I think that president Trump made some pretty clear statements. I don’t think it needs any further reflection. I think that he stated his views pretty abruptly and I think they were very clear.
As I have said this week, we want to see peace in the region, we want to see a ceasefire, we want to see de-escalation, and that is consistent with the very clear comments of president Trump.
Luca Ittimani
Cinema operator Dendy fined $20,000 by ACCC
Cinema operator Dendy has been fined $20,000 after allegedly displaying movie ticket prices that were lower than what customers would actually have to pay, the consumer watchdog said.
Dendy runs four movie theatres in Queensland and one each in Sydney and Canberra. It paid the penalty after allegedly showing customers online prices that excluded unavoidable booking fees, rather than the true total price of a ticket, the Australian Competition and Consumer Commission said.
The website displayed the full price when customers reached the final stages of the online transaction, but not in the earliest stages of the booking process, the ACCC claimed, a practice known as drip pricing.
Catriona Lowe, ACCC deputy chair, said the practice could see customers “lured into purchases they would not otherwise have made”. She added:
By initially only displaying part of the total price for a movie ticket, Dendy has reduced the ability of consumers to make an informed purchasing decision.
The watchdog is investigating whether booking fee transparency and other pricing practices in the cinema industry comply with theatre operators’ legal obligations.
You can read more about how drip pricing works here:
Court orders ABC to pay Lattouf compensation of $70,000
Rangiah ordered the ABC to pay Lattouf $70,000 in compensation after her victory in the unlawful termination case.
Read more from our full story here:
