Lowering petrol and oil prices helping put downward pressure on inflation

ABC NEWS (Australia)

Households struggling with the cost of living are seeing some relief at the petrol browser. Oil prices are around four-year lows sparked by Donald Trump's tariffs and an increase in supply. It's helping to put downward pressure on inflation, giving more hope the Reserve Bank will again cut interest rates.

Transcript

00:00These trucks burn thousands of litres of diesel every day, delivering to supermarkets and

00:07construction sites.

00:09When fuel prices drop, customers pay less.

00:13If you buy a bag of groceries, you're going to have a hundred different items in there.

00:17Well then there should be a little save on every item.

00:20Oil prices are hovering around four-year lows.

00:24At the pump, the average price of diesel is falling and is now 182.9 cents a litre, while

00:30the average petrol price is about 178 cents a litre.

00:34So in the last 12 months, the price per litre of petrol has fallen by 45 cents a litre.

00:40But for many, fuel prices aren't coming down quick enough.

00:44Last year we went up to 240 and it's kind of sad at that point and hasn't dropped at all.

00:49I need to use a lot of petrol.

00:51So I need to cut some of the budget in other areas.

00:55Prices are expected to fall further as oil supply increases and the US president continues

01:00his trade war.

01:01These tariffs that Trump has introduced is clearly going to slow down economic activity

01:08if they play out as he's suggested.

01:12The price for Brent crude oil is more than US$10 a barrel lower than when the Reserve Bank

01:17last updated its economic forecasts in February.

01:20If the price holds at this level, it would put downward pressure on inflation, giving the

01:25Reserve Bank more room to cut interest rates.

01:28So much of what we buy in our supermarkets and our local shops is distributed by road freight.

01:34That's where the big impact will be.

01:36And that flows right through to the cost of living, right for everything.

01:40Life at a time when many need it most.

01:42And that's the most common use of us.

01:44What we need to make is risk-free for all the people in our shop.

01:45Next, I'll never get a look at this.

01:46I will never get any further results.

01:47On the future, we can take a look at this.

01:48I want to take a look at this.

01:49You have to be honest with the fact that I'm short.

01:51I'm not fit.

01:52If, the reason I'm short of doing this is but not ½ because I'm not going to be

01:53a better place.

01:54In the future, it's half a time when many need it most.

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