The Consumer Price Index could have an impact on the Reserve Bank of Australia's next interest rate decision, one industry expert has noted.
A possible Reserve Bank of Australia (RBA) rate rise in August could depend on the Consumer Price Index (CPI), according to one industry expert.
Craig James, chief economist for Commsec, said the CPI number of the June quarter will be "pivotal" to the rates in the future, News Limited Newspapers reports.
He added that if the CPI rate was above 0.8 per cent then the chances of an official cash rate rise next month would be higher.
And his comments have been supported by Glenn Stevens, governor of the RBA, who noted that the inflation result out on July 28th would be an important factor in what the organisation does at the start of next month.
The RBA maintained the official rate at 4.5 per cent earlier this month, but recent research by the Sunday Age has revealed that credit card companies have made around $90 million after ignoring official levels.
Moreover, this has affected people who use Aussie credit to pay for household essentials, the publication continued.
By Nate Sawyer
