What’s gone rightWhat’s gone right is that inflation has proved easier to subdue than expected, and not only inflation in the price of goods, many of which are made overseas. The annual rate of inflation might climb from 3.6% in April to 3.8% or even 4% in May. Westpac expects no change, meaning a monthly inflation rate of zero. The annual inflation rate is expected to climb because prices fell a year earlier in May 2023, not because they climbed in May 2024. Lower inflation, and a tax cutIf the inflation rate does keep sinking when the official quarterly figures are released next month, it’ll be doubly good news for stretched households.
