services inflation was quite strong in the latest ABS data,<\/a> which points to an uptick in discretionary spending, Deutsche Bank\u2019s chief economist Phil O\u2019Donoghue said on Business Now.<\/p>\n\u201cI think the RBA is going to be pretty worried about that,\u201d Mr O\u2019Donoghue said.<\/p>\n
\u201cI expect tomorrow we’re going to hear (RBA governor) Michele Bullock \u2026 sounding a cautious alarm about this service inflation.<\/p>\n
\u201cIt should be a bit more circumspect, but I expect there’ll be a little hand-wringing from the RBA.<\/p>\n
\u201cWe can still expect cuts \u2026 (but) I don’t see any more cuts this year. I think February next year might be the first opportunity for a cut from the RBA.\u201d<\/p>\n
While economists say there is a 50 per cent chance of a cut in December, future inflation data will be a key determinant in whether further relief is coming this year.<\/p>\n
It comes as annual inflation for takeaway meals rose 3.8 per cent in August, while the cost of meals at restaurants jumped 2.8 per cent, according to the Australian Bureau of Statistics.<\/p>\n
Mr O\u2019Donoghue stressed that Ms Bullock has expressed a \u201creal intolerance\u201d of seeing the post-pandemic inflation return and will cement the RBA\u2019s cautious approach for the foreseeable future.<\/p>\n
\u201cWe’ve had three cuts so far, I think we can expect more cuts next year,\u201d he said.<\/p>\n
\u201cUnfortunately, I think we’re just going to have to wait a little bit longer before we see further cuts from here.\u201d<\/p>\n
The Australian Bureau of Statistics’ monthly CPI data showed the annual rate rose to 3 per cent in August, up from 2.8 per cent in July.<\/p>\n
This marks the highest annual inflation rate since July 2024, when inflation was 3.5 per cent.<\/p>\n
Inflation has now almost creeped to the top of the Reserve Bank of Australia\u2019s 2-3 per cent target band.<\/p>\n
However, the bank relies more on trimmed mean inflation – the middle 70 per cent of price changes – to inform its decisions.\u00a0<\/p>\n
Annual trimmed mean inflation was 2.6 per cent in August, down from 2.7 per cent.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Aussies should not expect any more interest rate cuts this year as service inflation soars after more households…\n","protected":false},"author":2,"featured_media":178767,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,9567,96993,164,115327,7054,183],"class_list":["post-178766","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-central-bank","tag-deutsche-bank","tag-economy","tag-phil-odonoghue","tag-rba","tag-reserve-bank-of-australia"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/178766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=178766"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/178766\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/178767"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=178766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=178766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=178766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}