Australia’s Inflation Cools, Boosting Case to Extend Pause
- Government rebates helped to ease gains in electricity prices
- Currency, government bond yields fall as RBA seen standing pat
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Australia’s monthly inflation gauge eased more than expected, reflecting global trends and bolstering the case for the Reserve Bank to extend a pause in tightening at next week’s policy meeting.
The consumer price indicator rose 4.9% in July from a year earlier, compared with economists’ estimate of 5.2%, Australian Bureau of Statistics data showed Wednesday. The result was the third consecutive slowdown in the pace with the RBA predicting inflation will fall back inside its 2-3% target by late-2025.