May CPI eases back

THE LATEST interest rate cut by the Reserve Bank (enabling key retail lending rates to decline to 13.75%) has been accompanied by the May CPI (consumer price index) easing back to 6.4% year-on-year (y/y) - down from April's 6.5%.
This drop in headline inflation was despite price pressure from the housing component. However, this contribution was still lower than April - and should ease further with lower interest rates.