Australian Inflation Eases Pressure on Interest Rate Hikes

Australia's consumer price inflation slowed in the June quarter, easing pressure on the Reserve Bank of Australia to hike interest rates. The Australian Bureau of Statistics reported that the Consumer Price Index (CPI) rose 0.6% in the quarter, after a 1.4% jump the previous quarter. Annual CPI eased to 4.0%, from 4.1%. Core inflation, measured by the trimmed mean, increased by 0.8% in the quarter, just under forecasts of a 0.9% gain.

The Reserve Bank of Australia has raised interest rates three times this year to tame inflation, fully reversing the amount of policy easing implemented last year. Governor Michele Bullock said that it was not clear if rate hikes so far were enough to return inflation to target.