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    Inflation slowing but murkier picture beneath the surface

    Article

    The disinflationary process continues as headline inflation slowed to 5.6% over the year to May, from 6.8% in April. However, the details get a little murkier when we look under the surface. Inflation barely budged when we strip away volatile items and holiday travel. This suggests that underlying inflationary pressures remain more persistent than first meets the eye. Added to this picture is a labour market that remains strong and consumer spending which surprised to the upside.

    What does this all mean for the RBA? Watch this short video to find out more:

    Inflation slowing but murkier picture beneath the surface (2:40)

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