Australian Inflation Data Increases Pressure For RBA Rate Hike
· Business · ABC News (AU), The Guardian, Forex Factory
Australian annual headline inflation slowed to 3.5 per cent in July, down from 3.8 per cent in June, according to the Australian Bureau of Statistics. Despite this, the Reserve Bank of Australia's preferred underlying inflation measure remained stagnant at 3.6 per cent for the third consecutive month. Economists now suggest the RBA may consider an interest rate hike at its September meeting to combat persistent price pressures. The rise in monthly automotive fuel prices, driven by global oil costs and the reduction of federal fuel excise relief, contributed to the figures. Most economists had previously expected the RBA to keep rates on hold.
Why it matters
Homeowners and borrowers in Australia face the prospect of higher interest rates as the central bank struggles to bring underlying inflation within its 2.5 to 3 per cent target range.
Read the original report — ABC News (AU)
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