Australian Inflation Eases, Aussie Dollar Weakens on Soft CPI Figures

The Australian consumer price index (CPI) rose 3.8% in the 12 months to June, down from 4.0% in May.

The largest contributors to annual inflation were housing, which increased by 6.8%, and food and non-alcoholic beverages, as well as recreation and culture, both of which rose by 3.3%.

In the month of June, the CPI fell 0.1% in both original terms and seasonally adjusted terms.

The Australian dollar weakened after the release of the data, with some analysts suggesting that markets had been overly focused on high inflation expectations.