Australian Inflation Cools; June CPI Drops to 3.8%
Australia's annual inflation rate eased to 3.8% in June, down from 4.0% in May. This figure came in below market forecasts, which had anticipated inflation remaining at 4.0%.
This decline marks the slowest pace of price increases since February. Nevertheless, Australian inflation remains above the Reserve Bank of Australia's (RBA) target range of 2% to 3%.
Inflationary pressure eased primarily due to a drop in goods inflation to 3.5% from 4.2%. Transportation costs also slowed sharply, rising just 0.1% compared to 3.3% in May—the lowest rate in four months.
On a monthly basis, Australia's Consumer Price Index (CPI) fell by 0.1% in June. This result was better than market expectations of a 0.2% rise, although the CPI had recorded a 0.7% drop in the previous month.
Regarding market impact, the lower-than-expected inflation data could weigh on the Australian dollar, as the market may perceive reduced pressure on the RBA to raise interest rates. However, with core inflation measures—such as the trimmed mean and weighted median—holding at 3.6% year-on-year, the RBA is likely to remain cautious before signaling any policy easing. (asd)
Source: Newsmaker.id
