Annual inflation in Australia fell to 3.8% in June, undershooting expectations and marking the slowest pace since February.
Australia’s annual inflation rate eased to 3.8% in June, down from 4.0% in May and below the 4.0% consensus forecast. The slowdown was driven by a drop in goods inflation to a four-month low of 3.5%, though price pressures remain above the Reserve Bank of Australia’s target range of 2-3%.
The June print represents the softest annual growth since February, following a period of elevated inflation. Economists had anticipated inflation to hold steady at 4.0%, reflecting persistent services and housing cost pressures. The RBA has maintained a restrictive policy stance to curb inflation.
Markets are assessing the implications for future rate cuts, though the central bank has signaled patience in easing monetary policy until inflation sustainably returns to target.