00:00The boss of this transport company is keeping a close eye on developments in the Middle East,
00:07which is causing oil prices to fluctuate.
00:10When the fuel goes up, the price of goods in stores goes up because the fuel levy has
00:17to be added to the cost of getting the products to the store.
00:23Price volatility isn't showing up in official figures yet.
00:27Oil actually fell 2.9 per cent last month and 10 per cent for the year, helping to put downward
00:33pressure on inflation, which came in lower than expected at 2.1 per cent for the 12 months
00:38to May.
00:39Food, non-alcoholic drinks, rent hikes and construction cost pressures eased, but gas prices accelerated
00:47while electricity bills went backwards.
00:50Inflation is now at the bottom of the Reserve Bank's target range in what is now a sustained
00:57way.
00:58A price war on home brand products in supermarkets is underway, according to JP Morgan.
01:04And Choice found a basket of 14 items was slightly cheaper at Aldi than Woolworths and Coles, but
01:10a lot more expensive at IGA.
01:12I do find Aldi are a lot cheaper, but sometimes they just don't have the same things that Coles
01:19and Woolworths do have.
01:20Some relief could be on the way for households with financial markets pricing in more than
01:25a 90 per cent chance of an interest rate cut when the Reserve Bank meets next month.
01:30That probably means that they will cut in July, follow up with another one in August and most
01:34likely deliver a third cut this year in November.
01:39In time for when many households might need it most.
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