00:00The June quarter inflation rate was bang in line with market expectations, but core inflation
00:07was a little higher than the Reserve Bank's last forecast – 2.7% versus 2.6%.
00:13But it was close enough for the futures market to take the odds of a rate cut when the RBA
00:17next meets – in a fortnight – from 88% last night to 100% this afternoon.
00:23The odds of another cut this year are also 100%, and the punters reckon the cash rate
00:27will be 3% in March.
00:30Here's a long-term chart of inflation, both headline and core inflation – aka the Truman
00:35Demean where they take out the biggest price moves – and they're both back within the
00:38Reserve Bank's target range.
00:40Happy days!
00:41But that's for economists and other boffins.
00:44The rest of us know that while the rate of price increases has fallen, prices are still
00:48rising.
00:50And this is what's happened over the past four years.
00:53All prices are up 19.3%.
00:55Food – 21.2%.
00:58Education – 22.7%.
01:00Housing – 26.4%.
01:02And healthcare – 18.1%.
01:05By the way, the US Federal Reserve meets tonight and the market odds of a rate cut there are
01:09zero.
01:10The share market rose following the inflation data release with decent gains by banks and
01:15retailers, but play the last post for Bowen Coke and Coal into administration today after
01:21it couldn't pay contractors, and the Queensland Government turned down its request to defer
01:26royalty payments – about 500 people are employed there.
01:30The Aussie dollar fell at first, but went back up again.
01:34And the oil price accelerated upwards after President Trump repeated his threat of more sanctions
01:39against Russia.
01:40And that's finance.
01:41And that's finance.
01:46»
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