Australian Inflation Slows to Three-Year Low

SYDNEY (Reuters) – Australian consumer price inflation slowed to a three-year low in August due to government rebates on electricity and a drop in petrol, while core inflation hit its lowest since early 2022, indicating that costs are cooling, albeit gradually.

Data from the Australian Bureau of Statistics on Wednesday showed that the monthly consumer price index (CPI) rose at an annual pace of 2.7% in August, down from 3.5% in July and exactly in line with market forecasts.

A closely monitored measure of core inflation, the trimmed mean, decreased to an annual 3.4%, down from 3.8%, leaving it above the Reserve Bank of Australia's (RBA) 2-3% target band, presenting a challenge to interest rate cuts.