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[BUSINESS] · Australia · 46 sources

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Australia inflation eases to 3.5% in July

Australia's annual headline inflation eased to 3.5% in July, down from 3.8% in June, according to the Australian Bureau of Statistics. While this decline is a positive signal, the rate remains above the Reserve Bank of Australia's target range of 2% to 3%.

Trimmed mean inflation, a key measure of underlying price pressure, remained steady at 3.6%. Housing was the largest contributor to the inflation figures, rising 5.0% over the last 12 months, driven largely by a 5.7% increase in the cost of new dwellings.

Other notable contributors included food and non-alcoholic beverages, which rose 3.2%, and recreation and culture, which rose 2.6%. Monthly automotive fuel prices saw a significant jump of 7.5% in July.

Despite the easing headline figure, the Reserve Bank of Australia has maintained the cash rate at 4.35%. Recent board minutes indicate that while members considered a potential rate hike to prevent entrenched inflation, they ultimately decided to hold the rate to monitor economic growth.

Entities

Australia · Australian Bureau of Statistics · Michele Bullock · Rachael McCririck · Reserve Bank of Australia

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