Australia’s inflation figure has dipped this month, in a promising sign inflation may have peaked.

Australian Bureau of Statistics data revealed inflation has fallen to 6.9 percent in October, down from 7.3 per cent in September.

The Reserve Bank of Australia had forecast inflation could reach 8 per cent by the end of the year but senior economist at AMP Capital Diana Mousina said that now seemed unlikely.

“We have been seeing signs over the past few months that goods inflation is rolling over, things like fresh food prices are coming down, we can see that at the supermarket,” she told Neil Breen.

Ahead of the RBA’s board meeting on Tuesday and another anticipated rate rise, Ms Mousina predicted the official cash rate would be raised to 3.1 per cent.

But in positive news, she predicts the central bank will take comfort in today’s inflation figures.

“We think that will be the end of this rate hike cycle, which should be a positive for consumers.”

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