July’s annual inflation rate fell to its lowest since November 2025 but surpassed economist expectations of 3.3%.
Australia’s annual inflation rate eased to 3.5% in July, down from 3.8% in June, reaching its lowest level since November 2025. The reading, however, exceeded market forecasts of 3.3% and remained above the Reserve Bank of Australia’s 2-3% target range.
Prior to July, inflation had hovered above 3.5% for six consecutive months. Economists had anticipated a steeper decline, with consensus estimates centered at 3.3%. The persistence of inflation above the central bank’s target suggests ongoing price pressures in the economy.
Goods inflation continued to contribute to the headline figure, though details on specific categories were not immediately available.