Australia's June inflation comes in lower than expected but still 'uncomfortably high'
Headline inflation in Australia came in lower than expected in June, with some economists now saying a Reserve Bank interest-rate rise next month looks unlikely. The figures nonetheless remain above the central bank's target band.
Data released by the Australian Bureau of Statistics showed headline inflation came in below market expectations for June, prompting a growing consensus among economists that the Reserve Bank of Australia is now unlikely to raise interest rates at its next meeting.
Despite the softer reading, inflation remains above the central bank's target band, with officials stressing the figures are still 'uncomfortably high.' Price increases in housing, insurance and services continue to be the main drivers keeping inflation elevated.
Market participants are debating how the data will influence the RBA's decision at its August meeting, with some analysts predicting the bank will hold rates steady and maintain a wait-and-see stance. Pressure on household budgets remains most acute in rent and insurance costs.
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