Australian Inflation Update

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 prices. Core inflation also decreased, marking its lowest since early 2022, indicating that costs are gradually cooling.

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

A closely watched measure of core inflation, the trimmed mean, slowed to an annual rate of 3.4%, down from 3.8%. However, it remains above the Reserve Bank of Australia’s (RBA) target range of 2-3%, posing a challenge for potential interest rate cuts.