Australian Inflation Slows But Underlying Pressures Persist

Australia's headline inflation rate slowed to 3.5% in July, but underlying price pressures remained unchanged.

The Consumer Price Index (CPI) rose by 3.5% annually in July, down from 3.8% in June, according to the Australian Bureau of Statistics (ABS).

Housing was the largest contributor to annual inflation in July, increasing 5.0%, while food and non-alcoholic beverages rose 3.2%.

Economists warn that the Reserve Bank of Australia's (RBA) inflation challenge is far from over, with some board members indicating another rate rise may be needed.