In the short term, though, we are expecting the headline rate of inflation to dip a little in the September quarter. Utility prices have declined recently in some cities and policy changes are likely to reduce the measured price of child care. There have also been some policy changes at the state government level that will reduce other measured prices.
Collectively, these changes will help with cost-of-living pressures and free up income to spend on other things. From this perspective, these changes are good news. So these are some of the main issues we have been working our way through. As you are aware, the Reserve Bank Board has held the cash rate steady at 1½ per cent since August 2016.