Good afternoon. Inflation increased to 6.8% last month as energy prices jumped, but the easing of underlying price pressures has reduced the chance of another Reserve Bank rate rise in June.
The April rate is higher than the 6.4% pace economists had expected as well as the 6.3% reading for March. However, once volatile items were excluded, the underlying inflation rate, which the RBA watches most closely, eased to an annual clip of 6.5% in April from 6.9% in March.
Today’s inflation figure is the one of the last pieces of information the RBA will receive before it decides on interest rates next Tuesday.
David Bassanese, the chief economist at BetaShares, said the RBA need not “reach for its gun just yet – especially given other signs of a cooling economy, such as weaker building approvals and consumer spending”.
Top news
PwC to continue to audit RBA | Scandal-hit accounting firm PwC will continue to audit the Reserve Bank, including over possible underpayment of staff, but won’t get new contracts unless it can demonstrate “complete” transparency and accountability, said the RBA governor, Philip Lowe.
South Australia cracks down on protest | After a 14-hour debate, the South Australian government passed laws on disruptive protests, increasing the maximum fine to $50,000 along with potential jail time. SA Unions have accused the government of rushing through the bill, which was supported by both the Labor government and the opposition, and accused the government of failing to respond to most concerns.
RBA governor suggests more share houses | The RBA governor, Philip Lowe, told Senate estimates today that the housing market, including rents, is one of the biggest drivers of CPI. He suggested the only way to see housing costs come down was to reduce aggregate demand, which meant more people sharing dwellings or staying with their parents for longer.
State of Origin too close to call | Tonight’s State of Origin series is set to be the most evenly poised in memory, with pundits saying it is too close to call. Follow the 2023 State of Origin series opener in Adelaide with Guardian Australia’s minute-by-minute live blog. Kick-off on Wednesday night is 8.05pm AEST.
Water vapour blasts from Saturn moon | Astronomers have spotted an enormous 9,600km plume of water vapour blasting out of Enceladus, a tiny moon of Saturn that is considered one of the most promising places to find life beyond Earth.
Sackler family shielded from opioid crisis | A federal appeals court has ruled the Sackler family – the billionaires behind Purdue Pharma, the maker of the powerful and highly addictive prescription painkiller OxyContin – can be protected from lawsuits related to their company’s role in the opioids crisis.
North Korea spy satellite fails | North Korea’s first spy satellite launch has ended in failure after its second stage malfunctioned, sending the projectile plunging into the sea according to the country’s state media, with the regime vowing to conduct another launch soon.
Full Story
WA’s premier, Mark McGowan: political rockstar or Crood?
This week, Mark McGowan resigned after six years as Western Australia’s premier. After closing off the state during the Covid pandemic, McGowan was a divisive figure nationally, but in hhis home state he won record-high approval ratings which many believe helped pave the way for Anthony Albanese’s victory at the federal election.
Laura Murphy-Oates speaks to Western Australian reporter Narelle Towie on his rise to national prominence and what led to his resignation.
What they said …
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“We need more people on average to live in each dwelling, and higher prices do that.” – Reserve Bank governor, Philip Lowe
Lowe spoke in Senate estimates today about how the housing market, including rents, is one of the biggest drivers of CPI. So what does Lowe think is the solution? We go back to share houses.
In numbers
Holders of student loans are bracing for a 7.1% increase on their debts tomorrow with a record indexation rate due to come into effect.
The National Union of Students has joined the calls from a coalition of crossbenchers urging the federal government to freeze Hecs indexation to ease the burden on young people caught up in an “intergenerational wealth crisis”.
Before bed read
Scientists have identified one of Australia’s first long-distance walkers: a 250kg marsupial with “heeled hands” that roamed across the continent’s arid interior 3.5m years ago.
Daily word game
Today’s starter word is: POUT. You have five goes to get the longest word including the starter word. Play Wordiply.
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