Here’s a summary of the key points from the provided text:
CPI and RBA rate Cut: A reader suggests the RBA will be pressured to cut rates in July due to low CPI numbers. The author agrees, noting the risk of undershooting the inflation target and causing unnecessary economic hardship. They mention that market economists and the RBA are usually cautious about monthly CPI data, but the current figures are low enough to warrant concern. They also highlight that NAB’s Sally Auld already has a July rate cut as her base case.
Fuel Prices: A reader asks why diesel prices are already high despite recent oil price drops. The author explains that oil price changes take weeks to affect retail prices due to refining and shipping times. They also mention Treasurer Jim Chalmers has warned fuel retailers against price gouging and has asked the ACCC to monitor prices.
Superannuation: The author notes that most people don’t check their superannuation often, but financial experts recommend being more observant.
Market Expectations for Rate Cut: Financial markets are pricing in an 88% chance of a July interest rate cut after weak inflation data. Though,only one of the four major banks (NAB) currently forecasts a July cut.
