But underlying figures mean another mortgage hike is on the cards ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

AU Edition - Today's top story: Underlying inflation is still too high, keeping another interest rate hike on the table View in browser

25 June 2026

AU Edition

 

On the surface, the latest inflation report looks like good news: headline inflation slowed to 4.0% in the year to May.

But that decline was mainly due to a drop in volatile petrol prices – nearly everything else we pay for kept rising, including rent, health, education and eating out. A key measure of underlying inflation, which strips out volatile items such as petrol, actually rose in May.

As Isaac Gross explains, this homegrown services-driven inflation is exactly what the Reserve Bank is worried about. And it means another interest rate hike is possible.

Mortgage rates have already been lifted three times this year, reversing last year’s three rate cuts. That has pushed new homeowners in particular closer to mortgage stress, as Rachel Ong ViforJ writes.

P.S. If you’ve been thinking of contributing to our fundraising campaign, there are a few days left to make a tax-deductible donation. Every gift helps.

 

Victoria Thieberger

Business and Economics Editor

 
 
 

Underlying inflation is still too high, keeping another interest rate hike on the table

Isaac Gross, Monash University

The latest figures show petrol prices are down – but nearly everything else is still rising.

The government wants to increase home ownership. But life is tough for many new homeowners

Rachel Ong ViforJ, Curtin University

Australia has long romanticised home ownership. But with evidence linking mortgage stress to poor mental health, we can’t forget people once they get the keys.

Bird flu has spread to two Australian states. Here’s how it could accelerate our extinction crisis

Euan Ritchie, Deakin University

The arrival of the H5N1 strain may threaten our most vulnerable species.

ASIO chief reveals former Australian resident directed attack on Melbourne synagogue

Michelle Grattan, University of Canberra

The head of ASIO, Mike Burgess, has outlined Australia's security situation in his annual threat assessment.

Fact-checking is good journalistic practice. But it will do nothing to stop the rise of Pauline Hanson

Benjamin T. Jones, CQUniversity Australia

Post-truth politics means emotions trump facts. The major parties would be wise to remember this when trying to combat the rise of One Nation.

The Lincoln Memorial Reflecting Pool is treated with ‘nanobubbles’. What are they and how do they work?

Vince Craig, Australian National University; Noura Alzaidan, Australian National University

Nanobubbles are invisible, mysteriously stable, a thousand times thinner than a human hair, and surprisingly versatile.

The path that led Alan Greenspan to become the world’s most powerful central banker

Simon Bowmaker, New York University; Paul Wachtel, New York University

The Fed chair who served under five US presidents was more practical and less ideological than his detractors claimed.

Spending on child protection has almost doubled in a decade, so why isn’t it improving?

Claudia Bull, Deakin University; Daryl Higgins, Australian Catholic University

New research shows despite increased government funding, Australia’s child protection system isn’t getting better outcomes. Here’s why.

Generational conflict has been around forever – just ask the ancients

Konstantine Panegyres, The University of Western Australia

Among the Romans, fathers had complete legal control over their sons and daughters. This included the right to inflict capital punishment.

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Victoria’s logging industry
“Re: the ongoing schemozzle and obfuscation over native forest logging in Victoria, David Lindenmeyer and Chris Taylor’s article is a beacon of logic, excellent compilation of data and good writing. It should be compulsory reading for all Victorian politicians. It also highlights the need for strengthening information literacy and statistical understanding in our schools. We really have an enormous educational challenge in schools and in public education.”
Carmel McNaught, Emeritus Professor, The Chinese University of Hong Kong

Australia’s adversaries
"David Kilcullen writes: 'In Australia’s case, our adversaries also need things we can control, such as raw materials, sea lanes, supply chains, financial resources or data links.' Who are these hypothetical adversaries? Surely the answer to this question should be the first step in any defence planning. The assumed but unspoken potential adversary is China. No evidence is adduced to support this supposition. We have a strong mutually beneficial trade relationship with China. Maintaining this relationship would be better and cheaper in every respect for China than any attempt to invade or overpower Australia."
Charlie Carter, Alice Springs NT

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