Australian Inflation Remains Sticky at 3.5% Despite Easing

Australian inflation remained stubbornly high in July, with annual headline consumer prices increasing by 3.5%, down from 3.8% in June but above economists' expectations.

The Reserve Bank of Australia (RBA) is keeping a close eye on the data, as trimmed mean inflation, its preferred measure of underlying price pressures, held steady at 3.6% over the 12 months to July.

Housing was the largest contributor to annual inflation, rising by 5.0%, followed by food and non-alcoholic beverages at 3.2% and recreation and culture at 2.6%.

The RBA's Governor Michele Bullock warned that inflation remains too high to consider rate cuts, and several analysts agree that further monetary tightening is likely needed to temper inflation.