Australia Inflation Eases In July
August 27 2024 - 11:20PM
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Australia's consumer price inflation moderated in July on energy
rebates, official data showed on Wednesday.
The monthly consumer price index indicator posted an annual
increase of 3.5 percent in July, following June's 3.8 percent rise,
the Australian Bureau of Statistics reported. Inflation was
forecast to ease to 3.4 percent.
Excluding volatile items and holiday travel, the monthly CPI
indicator gained 3.7 percent, weaker than June's 4.0 percent
rise.
The trimmed mean inflation, an alternative measure of underlying
inflation, was 3.8 percent compared to 4.1 percent in June.
Due to the energy bill relief fund scheme of the government,
electricity bills declined 6.4 percent in July, following a 0.1
percent rise in June.
The most significant price rises were reported by housing, food
and non-alcoholic beverages, alcohol and tobacco and transport.
"Inflationary pressures are easing gradually, but the details of
today's CPI release won't bring the RBA any closer to dropping its
hawkish bias," Capital Economics economist Abhijit Surya said.
ING economist Robert Carnell said a December rate cut looks
unlikely. "That said, we are encouraged by this latest data, which
we think makes a first-quarter 2025 cut look less speculative than
it had been looking," added Carnell.
Earlier this month, Reserve Bank of Australia Governor Michele
Bullock said the policy board will not hesitate to lift interest
rates if needed to contain persistently high inflation.
In August, the bank had kept the interest rate unchanged at a
12-year high for the sixth consecutive meeting.
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