Australian Inflation Eases, Interest Rate Hike Now Less Likely

The Australian Bureau of Statistics reported that inflation rose 3.8% in the year to June, down from 4.0% in May.

This is a crucial piece of data for the Reserve Bank of Australia (RBA), which will use it to decide whether to raise interest rates at its next meeting on August 10-11.

Financial markets have cut the chances of a rate rise to near zero after the softer-than-expected inflation report, but there is still a chance of another rate hike later in the year if inflation risks rise.