Australian Inflation Rate Slows to 3.8 Per Cent

Australia's inflation rate came in lower than expected at 3.8 per cent, according to data released by the Australian Bureau of Statistics (ABS) on July 28th.

The ABS reported that headline inflation slowed to 0.6 per cent in the June quarter from 1.4 per cent in April, while the consumer price index fell from four per cent to 3.8 per cent.

The trimmed mean - the Reserve Bank of Australia's preferred measure - held at 0.8 per cent in June and 3.6 per cent on an annual basis, beating expectations it would rise.

Ahead of the release, Bloomberg put the likelihood of a rate hike in August at 19 per cent, but money market traders have lowered the odds to 14 per cent following the data.