Australia’s inflation rate eased to 4.9% in July, down from 5.4% in June

Larger than expected fall reduces likelihood Reserve Bank of Australia will raise interest rates again

Australia’s inflation rate eased last month to its lowest level in 17 months, led by falling prices for fresh produce and automotive fuel, reducing the likelihood the Reserve Bank will need to raise interest rates again.

The consumer price index for July came in at an annual rate of 4.9%, the Australian Bureau of Statistics reported on Wednesday. That rate was slower than the 5.4% pace in June and compared with economists’ forecast for CPI to drop to 5.2%.

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Five key moments from Qantas boss Alan Joyce’s Senate grilling

Outgoing CEO faces fiery questions on the airline’s credibility, executive pay and ‘hoarding’ of flight slots

Alan Joyce has refused to answer questions related to his lobbying efforts, while delivering combative responses to allegations of Qantas misconduct, as he was grilled by a Senate committee on Monday.

At an explosive public hearing of the select committee on the cost of living, which Joyce had to be summonsed to after repeatedly refusing to appear, the outgoing Qantas chief executive defended the record $2.47bn full-year profit he announced just days earlier.

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Cost-of-living crisis: Albanese government launches taskforce to review competition in bid to ease pressures

Panel’s appointment comes as Woolworths reports rise in net annual earnings to $1.6bn, a day after Coles posts $1.1bn profit

The Albanese government will appoint a taskforce to provide a rolling competition review in a bid to lower cost-of-living pressures by creating a more productive and dynamic economy.

The taskforce, set up in Treasury, will include an expert panel including Danielle Wood, chief executive of the Grattan Institute, and Rod Sims, former chair of the Australian Competition and Consumer Commission (ACCC). It will engage in “targeted public consultation” and provide continuous advice over the coming two years.

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Inflation spiral: food prices could yet rise higher and may never come down

Concerns are growing over the effects of a warming climate on production and the danger of high grocery prices getting embedded into Australia’s economy

Food prices have been rising rapidly and there are reasons to fear they will push even higher. Economists warn some prices might never come down.

The ominous outlook is linked to drought conditions wilting crops in major grain-producing nations, disrupted grain deliveries out of Ukraine and moves by governments to ban food exports to protect their own supplies.

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Fears many Australians will abandon home insurance as premiums jump 50% in high-risk areas

Median premiums across all areas rose 28% in the year to March and actuaries warn climate disasters are driving them to unaffordable heights

Home insurance premiums have climbed by 50% in high-risk parts of Australia as global heating increases the frequency and cost of climate disasters, a new report has found.

The Actuaries Institute’s research on home insurance affordability and funding for flood costs, released on Monday, found median home insurance premiums rose by 28% in the year to March, sitting at an average of $1,894 across all states.

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NSW police taskforce to investigate spate of shootings – as it happened

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Wholesale power prices down from a year ago but still at elevated levels

Emissions from Australia’s main electricity grid dropped more than 6% in the June quarter from a year ago to a record-low for the period, and wholesale prices stabilised, the Australian Energy Market Operator (Aemo) said.

I think some of the people who are raising issues in the US Congress about this are saying ‘look the US has its own issues about its industrial base, its capacity to up its submarine production.’

But you know, what Aukus is about is actually augmenting the capacity to supply submarines in the region. And we Australia will be injecting money into the US industrial base.

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Chocolate prices soar as cost of cocoa rises 25%

World heads into a potential third year of supply deficit as major growing regions inundated by flooding

In bad news for chocolate lovers, confectionery makers are increasing prices as cocoa beans trade at near decade highs with no respite on the horizon.

Food companies have been grappling with rising costs for the main chocolate ingredient, with cocoa prices up more than 25% in a year amid widespread flooding in some of the world’s main growing regions.

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Nationals accuse Labor of ‘hypocrisy’ over response to scathing APVMA report – as it happened

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Cabinet meeting to decide Lowe’s successor today

Philip Lowe will be replaced as the Reserve Bank governor, with today’s cabinet meeting to decide his successor, Guardian Australia has confirmed.

If I was asked to continue in the role, I would be honoured to do that and I would continue.

If I am not asked to continue in the role, I will do my best to support my successor, and the treasurer has said he will make an announcement before the end of this month.

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Australia news live: ANZ says customers ‘by and large are faring extremely well’ despite interest rates squeeze

Follow the day’s news live

A student on New South Wales’s Central Coast has died after contracting the influenza virus, just days after NSW chief health officer Kerry Chant warned circulation of influenza B was rising and young people were at heightened risk from the strain.

You can read the full story here:

Having a budget which is in much better nick means that if at some future point – and we’re not contemplating additional measures right now – but at some future point if we need to, we do that from a much more solid foundation. And that’s because we’re managing the budget so responsibly.

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Senator says she has been ‘excluded’ from writing pamphlet – as it happened

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Patricia Karvelas challenges Littleproud’s Covid reasoning behind the Murray-Darling Basin delays on ABC RN this morning.

“This isn’t a new problem … Your government was in power when a 2019 Productivity Commission report warned that there had been limited progress returning the water to the environment,” she says. “Why didn’t you change course?”

This is a very technical piece of legislation … The 450 is additional to the 2,750 gigalitres of water in the plan, the Productivity Commission looked at the 450 gigalitres, there’s only been 2 gigalitres recovered on the 450 …

Because the neutrality test on social and economic impact on rural communities have not been passed to get more water back out of it – that’s a test the Labor government put in place, that we adhere to that the states agreed to.

He [is] going down a path that’s divided the country and meant that the attention has been taken away from managing people’s cost-of-living crisis, and focused on trying to win a referendum in which he has overreached in conflating a voice with constitutional recognition.

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Rents rise again across Australia with Sydney seeing fastest rise in 20 years

Median unit in harbour city now costs more than median house in every other capital, Domain says, as immigration adds to rental ‘pressure cooker’

Rents continued to climb across Australia in the June quarter, particularly in the biggest cities, with a median unit costing more to rent in Sydney than a median house in every other state capital, data from Domain showed.

A record migrant intake that will swell the nation’s population by 715,000 people over two years and a return of overseas students and temporary visa holders will add to the “rental pressure cooker”, Domain said in its quarterly report. About 127,000 additional dwellings will be needed this financial year alone.

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RBA should pause rate rises as ‘deflationary shock’ sweeps global economy, former board member says

Warwick McKibbin says Australia’s central bank has been slow to react as supply pressures from Covid and war in Ukraine abate

The Reserve Bank should pause lifting interest rates because a “deflationary shock” is beginning to sweep the global economy, according to the former RBA board member Warwick McKibbin.

The director of the ANU Research School of Economics said it is becoming clear supply shocks from Covid and Russia’s war against Ukraine are abating. However central banks, including Australia’s, have so far been slow to react.

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Australia news live: Tanya Plibersek announces audit of 1,000 environmental offset sites to check if they are delivering on promises

Treasurer Jim Chalmers wants to maintain strong budget position while rolling out existing policies; federal government cancels satellite program. Follow the day’s news live

The treasurer, Jim Chalmers, denies Australia’s first budget surplus in more than a decade comes at the expense of under-pressure households as the cost of living rises, AAP reports.

Chalmers has confirmed there will be a larger surplus for the 2022/23 financial year than predicted in last month’s federal budget.

By getting the budget in much better nick by finding savings ... it actually makes it possible from that much stronger foundation to provide the $15bn of cost-of-living relief that we had in the budget.

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Banks stick to rate hike predictions – as it happened

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Historical societies say banning hate symbols could impact history preservation

Historical societies are also concerned about the proposal to ban Nazi and Islamic State symbols, AAP reports. They worry it will limit education and the preservation of history, and impact memorabilia value.

Modellers need to be able to purchase these items (and) symbols, let alone the basic right of Australian citizens to partake in the legitimate hobby of collecting modelling military items.

The words inscribed on the Islamic flag are sacred words and written by Muslims on a daily basis.

These words are taken directly from our scripture, the Holy Quran, and therefore cannot be subject to a ban.

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Could rent controls ease Australia’s housing crisis?

Advocates say caps or freezes may help reduce pressure on renters but experts warn they are not a simple fix

Renters are bearing the brunt of Australia’s housing crisis, with stories of extortionate rent increases for poor quality homes making headlines all too often.

One solution being flagged by advocates is to control rents, either through freezes or caps on how much landlords can increase the amount.

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PM launches byelection campaign – as it happened

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Birmingham tells RN he is ‘conflicted’ over voice to parliament

Shadow foreign minister, Simon Birmingham, avoids disclosing what he will vote in the voice referendum, dodging ABC RN’s Patricia Karvelas’ questions.

Do you support the voice?

I’ve been clear that I don’t intend to actively campaign in the referendum.

Why aren’t you taking a position? I mean, you’re making it clear that you want it to be private. If it’s private, that means you are actually sitting on the fence.

Patricia, I think you can hear from my answer there, that I am, in some ways conflicted and think this is a very difficult situation the country has been put in, that we have got a question before a proposed change.

We’re getting a situation where the government is not really directly responding to Ukraine’s requests for the Hawkei vehicles, or the Abrams tanks, nor the D mining equipment they’ve asked for.

[The Albanese government’s] contribution in terms of humanitarian assistance is simply $10m compared with the $65m that had been provided previously. So this is a concern …

Status as the leading non-Nato contributor to Ukraine has slipped away and the type of support being offered now doesn’t seem to be either meeting Ukraine’s requests, providing the modern equipment that they want or need, nor the type of scale that would seem to keep Australia commensurate support of our other parts.

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Golden nuggets: KFC price hikes in Australia outpace McDonald’s with some products up to 25% dearer than a year ago

Higher-than-inflation rises add to pressure on consumers facing steep price increases for food

KFC is pushing up prices at its Australian stores at a faster pace than its rival McDonald’s, with consumers paying up to 25% more for some of the fast food chain’s most popular items, new analysis shows.

The higher-than-inflation hikes add to the mounting pressure on consumers facing steep price rises for food, irrespective of whether it is sold through a drive-through window or supermarket checkout.

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Senator removed from party room – as it happened

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Liberal senator David Van is speaking to Sydney radio 2GB about independent senator Lidia Thorpe’s allegations in the Senate yesterday.

Thorpe withdrew the remarks to comply with the Senate’s standing orders but said she would be making a statement on the issue today.

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Australian renters facing ‘pre-application’ for properties before inspecting

Applicants asked for proof of identity, rental and financial history, and references, with some listings being snapped up before first showing

Renters looking for new homes are being forced to “pre-apply” before inspecting properties, a process that can take hours and involves providing personal details, financial information and references.

Cassandra, who did not want her last name published, is looking for a place to rent in Melbourne after getting a job in the city. She said several listings she has come across during her search asked for pre-applications.

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$15,000 more a year: homeowners brace as interest rate hikes bring ‘mortgage cliff’ closer

Rate rises mean that households with an average $576,985 mortgage will have to find an extra $1250 a month

Jack Lynch and his partner moved out of Sydney to the picturesque but cheaper Blue Mountains to become homeowners in 2021, and promptly locked in a cut-rate, fixed-rate loan.

The couple, in their early 30s, are now bracing for that loan to expire, and for repayments to increase by more than $2,000 a month.

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