Low retail prices across the market have been a cause for concern at the offices of the Reserve Bank of Australia (RBA), with many of them having started wondering if there is reason for concern across Australia. As a result, the RBA launched an investigation into this which concluded in the penultimate week of June.
Their statement related to the investigation claimed that they had seen a large downward shift in the average rate of retail inflation that isn’t explained by labour costs or import costs. The RBA has concluded that the primary factors are due to technology / Internet and increased competition from overseas retailers (e.g. ALDI).