According to Jinshi Data, Robert Carnell of ING Bank said that Australia's core inflation index fell in July, showing hope that inflation is starting to respond to interest rate hikes.

Although the headline inflation index fell less than expected, ING was encouraged by the data, arguing that it made expectations of a rate cut in the first quarter of 2025 no longer appear speculative.

Second-quarter GDP data due next week may further bolster the case for a cooling economy and an improving inflation outlook.