There is positive news in this quarterly update. The June quarter data for all three measures that I track is now available.

Remember from previous bulletins, consumer price inflation is driven by producer price inflation which is driven by excess growth in the money supply, that is in excess of overall economic growth.

The rate of growth in money is slowing in Australia. In turn, the growth in producer prices is slowing and hence for consumer prices. One caveat: GDP is weak. It is not clear yet if the growth in money is back on par (or below) growth in GDP. But getting growth in money close to zero is an essential first step to stabilise prices.