As it happened: Key inflation figures released today; Labor MP says Assange could cut deal to secure freedom

Australia’s inflation rate has sunk more than expected, with the figure moderating to six per cent in the June quarter from seven per cent growth through to March, the lowest quarterly rise since September 2021.

The news that inflation is cooling has led to speculation that interest rates will now be put on ice, with futures traders adjusting the odds of an interest rate rise next week from almost 60 per cent to less than 30 per cent.

But business columnist Elizabeth Knight isn’t so sure. Knight thinks it’s too early to celebrate sinking inflation while the RBA continues closely monitoring other figures that haven’t yet budged.

The reason the inflation battle has not been declared over is that services inflation remains a pocket of resistance – and it’s a front that is closely watched by the Reserve Bank as it deliberates when or whether it will need to raise interest rates one last time.”

Knight explains how taming services inflation has been a challenge for reserve banks all over the world, as the cost of services like rent, insurance, holiday travel and eating out remains high for various reasons.

With all this in mind, Knight doesn’t think Phil Lowe will skip both his final chances to raise rates before he vacates the governor’s seat.

The latest inflation numbers signal that Reserve Bank governor Philip Lowe has a tough call to make. He has only two more opportunities to raise rates before he leaves the job. It is hard to believe he won’t use one of them either in August or September.”

Read Elizabeth Knight’s full column here.

With AAP

Climate Change and Energy Minister Chris Bowen has delivered a speech in Japan to calm fears that the Albanese government’s upgraded climate targets won’t disrupt Australia’s gas exports.

Australia provides about 40 per cent of Japan’s gas supply and its government has warned the Albanese government its climate policies could affect international relations, following new rules that require new Australian gas projects to have net zero emissions.

“This will include LNG (liquified natural gas) and traditional sources of energy, but will also include renewables, green hydrogen and its derivatives,” Bowen said.

“As a member of the National Security Committee of the Australian Cabinet, I can reaffirm to you on defence, economic security and supply chain resilience we are committed to working with Japan as one of our most important partners.”

Bowen said new gas projects would be able to offset their emissions, enabling “increases in production” while projects meet climate goals.

“The scope for cooperation and transformation is absolutely enormous,” Bowen said.

“Our resources-rich continent and Japan’s industrial might are a world-match partnership. We will pursue our energy goals and emissions targets while remaining a trusted and reliable supplier of energy.”

Liz Ellis’ opinion piece on why the Commonwealth Games fiasco will rob Australia of Olympic gold is generating interesting conversation with our subscribers.

@John Grierson says: “The countries that win the most medals at the Olympics - USA, China, Russia - don’t go to the Commonwealth Games. We should focus on going head-to-head against them at truly international competitions if we are serious about winning Olympic medals, rather than some vastly overpriced colonial relic where we show up and win everything.”

@FranM writes: “A comms games medal would surely be a relief to those struggling with cost of living? It’s nonsense, things have changed and we expect an economic response that aligns with the greater need of the public.”

@AH says: “I personally know an Australian athlete who competed at a Commonwealth Games. While she was happy to be there, she was very realistic that it was far from Olympic standard in the same sport, and that tempered her enthusiasm. World class athletes won’t lose sleep over this decision.”

But @Doyourhomework has a different take: “Thank you, Liz. It is about the athletes at the end of it all and they have been forgotten. The decision to can the Games may have saved money but has cost athletes an opportunity of a lifetime. The government should not have put its hand up to deliver the Games when it couldn’t do it.”

What do you think? Let us know via the link above.

More than half of the pilot whales that beached themselves off the southern coast of Western Australia on Tuesday afternoon have died, as rescue efforts continue to save the remaining numbers.

Volunteers are in the water supporting the bodies of the surviving whales to give them a chance to recover. Rescuers are optimistic they can release them as a pod.

The pod of nearly 100 was initially filmed floating in an unusual cluster about 150 metres off Cheynes Beach in Albany before the whales started becoming stranded about 4pm.

On Wednesday morning, Parks and Wildlife confirmed 51 whales had died overnight, while 46 were still alive.

Minderoo Foundation researcher Dr Rebecca Wellard said the long-finned pilot whales lived in complex social family groups and were known to strand in mass numbers for reasons still unknown by scientists.

“I think every stranding is unique to the species and the situation. With pilot whales, their strong family bonds may be a contributor to mass strandings,” she said. “If one animal is sick, or they have navigational issues, they will strand together.”

The Reserve Bank has for months been looking for clear evidence that it is winning the war on inflation.

On Wednesday, it got that evidence – much to the relief of families, business owners and those struggling to find affordable rental accommodation.

The June quarter inflation data was always going to be important to the bank. Thirteen months after it started lifting interest rates, it had to see some sign that all that monetary policy action was really starting to work.

On numerous counts, those signs were delivered in spades. The headline rate, at 6 per cent, was below market expectations and well short of the bank’s own forecasts of a 6.3 per cent annual rate.

Read Shane Wright’s full analysis of today’s inflation figures here.

Kamilaroi woman Louise Taylor has been appointed to the ACT Supreme Court, making her the first Indigenous woman to hold the role.

Taylor, who was previously an ACT magistrate, said it was a proud day for her and her family, and, she hoped, “for First Nations people, in particular First Nations women”.

“I’m conscious of the significance of it and I’m very proud to accept this appointment,” Taylor said.

Australia’s first Indigenous Supreme Court Judge, Lincoln Crowley, was appointed in Queensland last year.

ACT Attorney-General Shane Rattenbury said he was “delighted” that Taylor could represent Aboriginal people in the court.

“She will... be a role model for young lawyers coming through to understand how far they can progress with their careers, and hopefully that provides a source of inspiration,” he said.

Former foreign minister Julie Bishop fielded multiple questions on rumours of a diplomatic posting during her National Press Club address this afternoon.

The Australian Financial Review’s Andrew Tillett was the first to raise the prospect, mentioning speculation she has been offered the French ambassadorship.

Bishop didn’t address the question directly, only quipping, “You know I don’t speak French!”

Next, journalist Tim Shaw referred to the trend of former foreign ministers becoming diplomats, naming Kevin Rudd and Alexander Downer, and asked if Bishop had been approached to take up a post.

“That would be a matter between me and whomever was doing the asking”, Bishop answered coyly.

“I can assure you that I am more than delighted with my role at the Australian National University as chancellor. I am more than happy living in Australia.”

Prime Minister Anthony Albanese was asked how closely Australia was looking at New Zealand’s recognition of first nations people ahead of the Voice to parliament referendum.

Albanese noted that the Treaty of Waitangi - signed by both Maori chiefs and British colonialists - was New Zealand’s founding document. He said Australia’s founding document, the constitution, was alone in not recognising first nations people.

“What Australians are being asked to do in the last quarter of this year is a very clear and specific referendum,” he said.

“It is about the recognition in our nation’s founding documents but secondly, as well, it is about recognition through the voice or advisory body to Parliament and government of matters affecting Aboriginal and Torres Strait Islander people, in order to get a better outcome.”

New Zealand Prime Minister Chris Hipkins said the countries were coming from different starting points, and the Voice was a matter for Australia. He added that in New Zealand’s experience, reconciliation and treaty processes had been “overwhelmingly positive”.

“The process has been very positive for Maori, it has given them due recognition of what happened in terms of historic roles, but it has also created a platform on which the Maori economy is continuing to grow and prosper and thrive,” he said.

“We still have a way to go, but New Zealand is a stronger country for it.”