RBA Rate-Hold Bets Firm as Australian CPI Outpaces Forecasts

A gauge of Australia’s monthly inflation accelerated faster than expected in July, moving closer to the top of the Reserve Bank’s 2-3% target and supporting a gradual approach to cutting interest rates.

The Consumer Price Index indicator jumped 2.8% — the highest annual rate since July 2024 — and well above June’s 1.9%, official data showed Wednesday. Economists were looking for an acceleration to 2.3%. The RBA’s favored trimmed mean measure, which smooths out volatile items such as food and energy, rose 2.7% in July from 2.1% in the prior month.