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9 clusters · 67 sources · 59 days · First seen · Last updated

Categories: BUSINESS

Australia's growth lag, jobs surge, inflation eases

Entities: Reserve Bank of Australia · Australian Securities Exchange · Luci Ellis · Australian Bureau of Statistics · Westpac Economics

Overview

Australia’s economy continues to miss its 2.5 % growth target, with Q2 2026 GDP up only 0.3 %. The labour market stayed resilient in June, adding 76,300 jobs – the strongest monthly gain since April 2025 – with part‑time hires accounting for 47,000. Unemployment held at 4.4 % and the participation rate edged to a one‑year high of 67.0 %.

The Reserve Bank of Australia kept the cash rate at 4.35 % after three hikes this year. June CPI fell to 3.8 % y/y, driven by a 10.9 % drop in fuel prices, while core inflation remained at 3.6 % and housing costs stayed high at 6.8 % y/y. Market expectations of an August rate rise slumped to roughly 4 % (down from about 21 % after the May data). The Australian dollar slipped another 0.4 % to US$0.6949, and three‑year government bond yields fell 10 basis points to 4.48 %. The ASX rallied on the softer data, though analysts stress that housing and electricity price pressures remain elevated.

Further CPI data for Q2 showed headline inflation rising only 0.6 % and the trimmed‑mean measure up 0.8 % y/y, reflecting lower auto‑fuel prices, a temporary fuel excise tax cut and falling global oil prices. Westpac’s chief economist said the bank no longer expects any additional RBA rate hikes in 2026, leaving the cash rate at 4.35 % as a restrictive stance. RBA Governor Michele Bullock reiterated that the board stands ready to raise rates further if inflation does not ease, while productivity projects continue amid concerns that any additional tightening could tighten financial conditions.

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

Timeline

  1. about 21 hours ago

    [BUSINESS] 2 sources
    Australia and US Inflation Reports Shape Market Outlook

    Australian CPI eases, prompting Westpac to rule out more rate hikes, while US PCE and GDP miss expectations, pushing bond yields near 5.24% and raising September Fed hike odds to 63%.

  2. 3 days ago

    [BUSINESS] 45 sources
    Australia CPI eases to 3.8% in June, lessening RBA rate‑hike pressure

    Australia's June CPI fell to 3.8% y/y with core inflation steady at 3.6%; fuel prices dropped 10.9% and housing costs rose 6.8%, prompting markets to cut August RBA hike odds to ~4% and the Aussie dollar to US$

  3. 10 days ago

    [BUSINESS] 29 sources
    Australia's June job surge bolsters RBA rate‑hike expectations

    June 2026 saw Australia add 76,300 jobs, keeping unemployment at 4.4% and lifting RBA rate‑hike odds; inflation pressures and regional unemployment disparities persist, and Macquarie Group named a new CEO.

  4. 13 days ago

    [BUSINESS] 3 sources
    Australian jobs data outlook amid renewed US‑Iran conflict

    Australia’s unemployment may stay around 4.4 % as job growth slows, but rising oil prices from renewed US‑Iran tensions could pressure inflation and lead the Reserve Bank to consider a November rate hike.

  5. 23 days ago

    [BUSINESS] 2 sources
    Australia's growth outlook slows as crude oil prices surge

    The IMF forecasts Australia’s growth will fall below 2% in 2026‑27 as oil prices top $78/barrel, keeping inflation high and likely prompting more rate hikes.

  6. 24 days ago

    [BUSINESS] 2 sources
    Australia grapples with sluggish growth, high rates and AI-driven productivity push

    Australia’s economy is sluggish with growth under 2%, interest rates projected to stay high through 2027, and the government is promoting AI to boost productivity amid concerns over energy use and regulation.

  7. 25 days ago

    [BUSINESS] 6 sources
    Australia's economic growth forecast cut to sub‑2% amid slower productivity

    Deloitte cut Australia’s 2026‑27 growth forecast to 1.3%, warning of the longest sub‑2% stretch since the early 1990s, with inflation near 4% and unemployment rising toward 5%.

  8. about 2 months ago

    [BUSINESS] 2 sources
    Australia's labour productivity drops to post‑pandemic low

    Australia’s labour productivity fell 0.6 % in the March quarter while hours worked rose, with utilities identified as the most unproductive sector.

  9. about 2 months ago

    [BUSINESS] 4 sources
    Australia's economy slows sharply in March quarter

    Australia’s GDP grew only 0.3% in the March quarter, marking a slowdown, a first net trade deficit since 2017, and a per‑capita output decline that fuels warnings of a productivity recession.

Sources

7news.com.au · actionforex.com · aisj.org · brisbanetimes.com.au · cathnews.com · cityam.com · cn.dailyeconomic.com · communitynews.com.au · dynamicbusiness.com.au · econotimes.com · econoTimes.com · edge-forex.com · eeo.com.cn · eliteagent.com · epochtimes.com · europe-infos.fr · europesays.com · eveningreport.nz · farmweekly.com.au · finnewsnetwork.com.au · fool.com.au · forexlive.com · ibtimes.com.au · insidesmallbusiness.com.au · interest.co.nz · iss-casis.org · kagonma-info.com · kelo.com · kfgo.com · lazybudgetchef.com · liberal.org.au · m.smh.com.au · masterbuilders.com.au · memesita.com · mix929.com · negocios.com · news.cnyes.com · paparazzi.com.ar · perthnow.com.au · propertyupdate.com.au · psnews.com.au · regionillawarra.com.au · riverineherald.com.au · savings.com.au · sgsme.sg · sharecafe.com.au · smh.com.au · starcrossedanime.com

This summary has been updated 2 times: see revision history