According to Odaily, Australia's weighted Consumer Price Index (CPI) for July recorded an annual rate of 3.5%, slightly above economists' expectations of 3.4%. The adjusted core indicator average rose to 3.8%, down from 4.1% in the previous month. This cooling of inflation indicators in July suggests that price pressures have begun to ease in the current quarter, supporting the Reserve Bank of Australia's (RBA) rationale for maintaining steady interest rates.
Economist James McIntyre commented, 'At the September 24 meeting, the CPI data is likely to be a focal point for the central bank's review, alongside the second-quarter GDP data. We anticipate that the RBA will remain unchanged, maintaining a tightening bias to ensure inflation expectations are kept in check.'
