Low Fuel Prices Slow Cost Of Living.

Economists are predicting the Bureau of Statistics consumer price index has risen by 0.3% since September 2015 which will put the annual inflation rate at 1.6%. This is below the Reserve Bank’s target of 2-3%. Consumer spending is described as “lukewarm” which is pressuring businesses to discount. The dip in the cost of petrol to under $1, reducing the cost of living each week, a resurgence in employment in some sectors and the Aussie dollar below US70c has led to economists saying the RBA will very likely keep interest rates on hold.

Source: ABC