Australian Inflation Eases, But Underlying Risks Remain

Australia's inflation rate has eased, according to Reserve Bank of Australia Assistant Governor Sarah Hunter. In an update on the country's Q2 CPI reading, Hunter described the figure as 'a touch softer' than expected.

While headline inflation has continued to ease, underlying price pressures remain persistent, particularly in the housing and services sectors.

Hunter noted that the labor market is still tight, supporting elevated wage growth. She emphasized that monetary policy is primarily designed to manage demand rather than supply-driven costs such as energy or housing.