Chance of rate cuts by Reserve Bank dims as rents, education, insurance costs soar [Video]

Home buyers are unlikely to see an interest rate cut until closer to Christmas, and the Reserve Bank may even consider further rate rises after a lift in inflation caused by decades-high increases in education, rental and insurance costs.

Annual inflation has continued to fall, dipping to 3.6 per cent in the year to March, down from 4.1 per cent in the 12 months to December, according to the Australian Bureau of Statistics.

But in the first three months of the year, inflation lifted by 1 per cent after a 0.6 per cent increase in the December quarter.

Economists said the result – which was well above market expectations of a 0.7 per cent increase …