July’s trimmed mean CPI rose 0.5% month-on-month, exceeding forecasts and signaling persistent inflation pressures in Australia.
Australia’s July consumer price index climbed 1.0% month-on-month, reversing a 0.1% decline in June and surpassing the 0.8% forecast. Annual headline inflation eased to 3.5% from 3.8%, but remained above the 3.2%-3.3% consensus range.
Core inflation, measured by the trimmed mean, rose 0.5% from June, well above the 0.3% estimate. The data showed broad-based price pressures, including a 1% rise in market goods and services excluding volatile items and a 1.5% jump in discretionary spending.
The Australian dollar strengthened as markets reassessed the likelihood of another Reserve Bank of Australia rate hike in September, shifting away from expectations of a pause.