Australian Treasurer Chalmers said he expected upcoming data to show encouraging progress in fighting inflation, but he acknowledged that the central bank may not be ready to cut interest rates this week.

Inflation is expected to slow to 2.7% in August from a year earlier, according to the median forecast of economists. Chalmers said this suggests that monthly inflation is about half of what it was a few years ago, showing welcome and encouraging progress.

According to a survey of 31 economists, the Reserve Bank of Australia will keep the cash rate unchanged at 4.35% on Tuesday. Reserve Bank of Australia Governor Bullock said that before the CPI can move sustainably towards the target of 2-3%, the policy will need to remain "sufficiently restrictive."